In the wake of subdued industrial growth, the India Incorporation has reiterated its demand that the key interest rates like repo rate should be brought down by the Reserve Bank of India.
One of the apex industry bodies FICCI said that marginal growth in IIP could have adverse implications on employment opportunities also. FICCI demanded that The RBI should bring down the repo rate by 50 basis points.
“There is a strong case for RBI to cut down interest rates further at least by another 50 basis points immediately. What is worrisome is the fact that only eight out of twenty two industry groups have shown positive growth in July as compared to fourteen industry groups in the last month. This will have implications for employment also as the deceleration becomes more broad based,” Said RV Kanoria, President, FICCI in statement.
Confederation of India Industries (CII) said that it has become imperative to announce non legislative policy measures at the earliest, to boost the confidence in the economy.
“While monetary intervention in the form of repo rate cut has been due for a while, the economy is in need of sentiment boosters. Investments have dried up, which are evident from the performance of the capital goods sector. It is imperative that non legislative policy measures are announced at the earliest, which could help improve confidence levels in the economy,” said Chandrajit Banerjee, Director general, CII in a statement.
CII added that at this juncture, announcements on FDI, fiscal consolidation, manufacturing policy implementation, etc would be of great help. Further, impediments to manufacturing growth such as issues of land, power and business regulatory environment need to be addressed.
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