India's Finance Ministry Enforces Austerity Measures on State-Run Institutions

India's finance ministry has directed state-run banks, insurers, and financial institutions to implement stringent cost-cutting measures, including a transition to electric vehicles and significant travel restrictions, as per an order reviewed by Reuters.

The directive targets institutions like the State Bank of India, Bank of Baroda, and Life Insurance Corp of India, affecting millions of employees nationwide. All engagements are to be virtual unless physical attendance is necessary, stated the Department of Financial Services.

Executive foreign travel is to remain within set limits, encouraging virtual attendance of overseas commitments. Additionally, the government urges these bodies to replace petrol and diesel vehicles with electric cars. This follows Prime Minister Narendra Modi's austerity appeal amidst economic pressures from Middle East conflicts and a declining rupee.

(With inputs from agencies.)