RATE CUT MAY NOT BOOST GROWTH, AIAI

RATE CUT MAY NOT BOOST GROWTH, AIAI

Industry and Trade was expecting minimum rate cut off 100 BPS in view of the slow-down, which would have resulted in growth in industrial production and infra sector, said Vijay G. Kalantri, President, All India Association of Industries (AIAI).

AIAI feels in view of bringing in stability on inflation front and with abundant stocks of food grains and stable crude prices without worrying about monsoon forecasts, the Governor of Reserve Bank of India, Dr. Raghuram Rajan could have taken a bold step by reducing 100 BPS to give impetus to the economic growth.

owever, AIAI further feels that the banks should pass on to trade and industry, the 25 BPS twice reduced earlier and 25 BPS reduced now which will ease of the burden on the manufacturing and infra sector.