Arun Jaitley outlines measures to stem declines in rupee

NEW DELHI/MUMBAI (Reuters) - India will ease overseas borrowing norms for the manufacturing sector, its finance minister said after an economic review meet chaired by Prime Minister Narendra Modi late on Friday, as the government announced a slew of measures to stem a sharp fall in the rupee.

The rupee has been the worst performing Asian currency this year. Despite strong GDP growth, the currency has weakened about 11 percent this year amid higher oil prices and a broad sell-off in emerging markets, widening India's current account deficit and a worsening balance of payments that slipped into the red in April-June for the first time in six quarters.

Finance Minister Arun Jaitley said manufacturing entities will be permitted to avail external commercial borrowings (ECBs) of up to $50 million with minimum maturity of one year, down from three years earlier.

He said India will also relax rules to raise masala bonds, or rupee-denominated overseas bonds, for banks and will take measures to cut down "non-necessary" imports.

(Reporting by Promit Mukherjee, Nigam Prusty, Manoj Kumar and Suvashree Choudhury; Editing by Euan Rocha)