RBI should follow balanced approach in MPC meet, says FICCI

Apex business organisation, FICCI, on Tuesday urged the Reserve Bank of India (RBI) to take a balanced approach in the upcoming meeting of the Monetary Policy Committee (MPC).

The RBI MPC is meeting on April 4 and 5, to announce the first bi-monthly Monetary Policy Statement for 2018-19.

Rashesh Shah, President, FICCI, believes that there is a need to further push the growth levers, to be on track for economic recovery.

"Over the last few months, the signs of economic recovery are visible, but there is a need to further push the growth levers to see a complete turnaround in manufacturing and enable investments to reach full scale," he said.

Shah pointed out that FICCI's surveys show investment growth has not picked up at the desired pace and one of the reasons cited is lack of availability of affordable capital for higher investments.

"We urge the RBI to take a balanced approach in the upcoming meeting of the Monetary Policy Committee and take necessary action to encourage risk taking by business enterprises and release animal spirits. This is critical to boost investments and accelerate the growth of the economy," he added.

The six-member MPC, headed by RBI Governor Urijit Patel last met in February 2018, post the Union Budget.