ASSOCHAM welcomes RBI move to cut Repo Rate

The Associated Chamber of commerce and industry of India (ASSOCHAM) has applauded the monetary authority for correctly assessing the need of the industry and announcing a rate cut of 0.25 percent.

Rana Kapoor, President ASSOCHAM, said, "the move is in line with industry expectations and would help to revive growth and encourage investment. RBI views that any further cut in rate would depend upon further moderation of food inflation and current account deficit is well acknowledged. This move will brings cheer for industry, economy as whole and for the common man".

The government has a critical role to play in this regard by remaining committed to fiscal consolidation, easing the supply bottlenecks and improving governance surrounding project implementation, said Mr. Kapoor.

Index of industrial production and eight core sectors that are the backbone of the Indian economy rebounded sharply. If this trend of industrial growth and rising demand sustains, it could lead to quick and stronger revival of economic growth, creating more jobs, putting more money in people's pockets, added ASSOCHAM Chief.