CII hopes for 50 bps cut in interest rates

CiI expects an indication that RBI is open to bringing it down by 100 bps in long term

Industry body Confederation of Indian Industry (CII) is hoping for a 50 basis point cut in interest rates, as Reserve Bank of India (RBI) comes out with its monetary policy on May 3.

“We would like to see RBI cutting interest rate by 50 bps and give an indication that they are open to bringing it down by 100 basis ponts in the long term,” said S (Kris) Gopalakrishnan, President CII.

CII is also expecting that the gross domestic production (GDP) for FY14 will be 6-6.4 per cent, from the dismissal 5.2 per cent for FY13. “With the interest rate cycle turning, and the government making an effort to revive stalled projects, we can expect some recovery on 2013-14. However a growth of 8-9 per cent in the medium term is possible provided we accelerate economic growth by focusing on investment and consumption demand. Revive stalled projects, improve ease of doing business, increase investor confidence and start-up activity,” said Gopalakrishnan.

For this fiscal, CII’s agenda will be focused on reforms and governance, inclusive growth and affirmative action, innovation, entrepreneurship and growth of MSMEs and transformation of sectors.

CII has already submitted a list of 50 stalled projects in the manufacturing sectors to the government