Tuesday, 30 July 2013

India Inc. expresses disappointment over result of RBI meet

India Inc. expressed its disappointment over the Reserve Bank of India keeping its policy rates unchanged at the first quarter policy review meeting.

Expressing disappointment over the RBI's move for not cutting the key policy rates , India Inc today asked the government to take immediate actions to revive growth and boost investments.

"We are disappointed. The RBI has also cut down the GDP forecast for FY'14 to 5.5 percent, which is clearly reflecting the reality," CII Director General Chandrajeet Banerjee said.

He said economic growth needs to picked up and for that "moderate of interest rates are very important". Sharing similar views former Ficci President R V Kanoria said that the investment environment of the country should be improved.

"We have to reignite the passion of economic growth by building confidence in the economy. Enhancing investments are the need of the hour," Kanoria said.
Similarly, Rajiv Kumar, a senior economist, said that the GDP forecast would come down further.     

"The RBI is sacrificing the growth to maintain stability in the domestic currency," Kumar added.     

Weighed down by a weak rupee, the Reserve Bank today chose to keep all key interest rates unchanged and asked the government to take urgent steps to rein in the high current account deficit.

Lowering the GDP growth projection for the current fiscal to 5.5 percent from 5.7 percent, the central bank said the external sector is the "biggest threat" to economic stability.

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