Expressing disappointment over poor industrial performance, India Inc today pressed for rate cut by the RBI to boost production and further revive the economic growth.
Industry chamber Ficci said the RBI should intervene and cut interest rates.
“The IIP data for February calls for serious attention. It is important that RBI focuses on bringing down interest rates to stimulate investments which will further boost the demand,” Ficci Secretary General Didar Singh said.
Besides, he said, there is a need to ensure speedy approvals for large projects, under the Cabinet Committee on Investments.
Sharing similar views, CII Director General Chandrajit Banerjee said, the industry body hopes the RBI will relook at its monetary policy in the light of latest IIP figures and reduce interest rates.
“We hope that the RBI would reduce repo rate (short-term lending rate) and Cash Reserve Ratio (CRR) by 50 basis points, each, while announcing the annual monetary policy on May 3,” he said.
CRR is the portion of money banks are required to keep with the RBI.
Showing slump in the economy, the industrial growth has slipped to 0.6 per cent in February this year mainly on account of contraction in power generation and mining output and poor performance of manufacturing sector.