Pressure on the government increased with the Reserve Bank of India's surprise move on Thursday to cut interest rates
Infrastructure bonds were launched by the RBI last year in a bid to help the government fulfill its plan to provide affordable housing to all by 2022
In cutting interest rates and giving a boost to the government's efforts to revive growth, RBI governor Raghuram Rajan displayed the pragmatism and flexibility familiar to those who work with him.
However, some analysts say RBI Governor Raghuram Rajan may delay the rate cuts amid mounting concerns over the government's fiscal health.
Food costs jumped up year-on-year.
Economist Arvind Panagariya has also argued for loosening deficit targets to boost capital spending
India's bond markets have rallied since last year on expectations the Reserve Bank of India will start cutting interest rates as early as February due to sharply easing inflation.
Dealers also expect RBI to try to prevent excessive strength in the rupee in a bid to help exporters remain competitive
The government is now contemplating issuing an executive order to implement these measures, which would need to be approved by lawmakers within six weeks of the opening of the next session of parliament, scheduled for the beginning of February. India's president would also need to agree.
Modi orders coal, insurance sector reforms.
Modi, who was elected in May with a mandate to provide jobs and economic growth, has seen his reform agenda stymied by controversial statements by lawmakers in his party
Imports of machinery and transport equipment grew about 40 per cent month-on-month
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The central bank will come out with two measures on restructuring to tackle financial stress, Rajan said.
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Indian companies are keenly waiting for reforms on rules related to land acquisition, labour, coal and power sector, and foreign direct investment in insurance sector.
Rajasthan has taken the lead on structural reforms which could help India attract business and employ a fast-growing workforce.
The policymaker said the RBI had not reached the point where specific actions were under consideration.
It doesn't appear to be happening yet, even though India's stock market has been Asia's best performer this year.
Industrial production was upwardly revised to 0.5 per cent year-on-year in August from 0.4 per cent earlier.
Consumer food price inflation, under a new series published by the government, eased to 5.59 per cent last month from 7.67 per cent in September.
Despite no change in interest rates, India's largest lender, State Bank of India, last week became among the latest to lower deposit rates, often a precursor to lower lending rates, something some banks have already done for certain consumer loans.
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