All local infrastructure companies would be allowed to borrow international funds and spend those funds in India. The finance ministry has recommended five fold increases in international funds from $100 million to $500 million. The companies which are working in infrastructure activities such as roads, ports, power plants, telecom infrastructure building activities can avail the opportunity for their respective business expansion. The government has fixed a minimum average maturity of 7 years for funds above $100 million.

The move would increase fund flow in the country and stop the weakening of rupee. The rupee depreciated to a two-year low of 46.99 per dollar last week before recovering on Monday due RBI intervention The principal economist at domestic rating firm, Crisil, Mr. D.K Joshi said that the infrastructure firms can enjoy low interest funds, following the government decision. The interest rates are at peak point in India and expected to further increase following high inflation.

Chief Economist of HDFC Bank, Abheek Barua opined that the government should also relax norms for non-infrastructure sector.