In view of the macro-economic parameters, there has been an encouraging growth in the manufacturing sector, supported by the service sector. Further with predictions for a normal monsoon this year, there is optimism for India’s economic growth.
All India Association of Industries (AIAI) appeals to the Governor of Reserve Bank of India, Dr. Raghuram Rajan to reduce interest rate by 2% to give the much needed impetus to the Economic Growth, which has been sagging for last few years, however, anything less than 1% will not give the much needed boost to the economic growth, said Vijay G. Kalantri, President – AIAI.
AIAI further feels that reduction in interest rate will further enhance the morale of entrepreneurs, specially the MSME and the infra sector. This is also important for pushing forth the governments’ efforts of “Make in India” and ease of doing business initiatives besides bringing in the much needed investments in the country.
AIAI further feels, in order to control food inflation the 5%, wholesale price index is negative and that, its time for Reserve Bank to reduce it to 1% interest at least, if not more, merely giving some liquidity by reduction in Cash Reserve Ratio (CRR) or the Statutory Liquidity Ratio (SLR), will not help as there are no takers at this interest rate.