India Inc pitches for interest rate cut to sustain growth
Press Trust of India / New Delhi Sep 11, 2009, 17:52 IST
India Inc today described 6.8 per cent rise in July industrial output as "evidence of recovery" and pitched for a cut in interest rate saying it was necessary to sustain the growth momentum.
"Although performance in July has been somewhat lower than the previous month...Nevertheless robust growth in mining and manufacturing have kept up the level of industrial growth at a reasonable level of 6.8 per cent," Ficci Secretary General Amit Mitra said in a statement.
Mitra said, "The industrial economy is passing through a very critical stage... Ficci has therefore advocated the need for a softer interest rate regime to aid the overall growth process and encourage investments."
The RBI had cut reverse repo and repo rate by 25 basis points each in April.
In June, the factory production was revised to 8.2 per cent against 7.8 per cent estimated provisionally.
Assocham said in future, the impact of stimulus packages would also add on to the recovery and "India could move on to a close to 6.5 per cent of GDP in the current fiscal".
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