Assocham for check on interest rates

The Associated Chambers of Commerce and Industry of India (Assocham) has requested the ministry of finance and the Reserve Bank of India (RBI) to ensure credit availability at reasonable cost.

"There is a perception that since the interest rates in the US are estimated to rise, rates in India will increase too. However, we would like the ministry and the apex bank to ensure that the interest rates do not spiral. We have already lived with high interest rates and do not require any other hike," Anil K Agarwal, president of Assocham, told mediapersons here today.

Calling for a greater focus on the food processing industry, Agarwal said that though India ranked first in milk production and second in fruits and vegetables, it lagged behind in the food processing sector.

"At present, we are just processing 15 per cent of the milk produced and two per cent of the fruits and vegetables grown here," he added.

To sustain the GDP growth rate of over eight per cent, Assocham also said that there was a need to attain 12 per cent growth in manufacturing and 4 per cent in agriculture from the earlier 9 per cent and 3.7 per cent respectively.

Expressing concern with regard to the shortage of power in the country, Agarwal called for more public-private partnerships in this sector.

On the fiscal front, he mooted a single rate of customs duty to eliminate the inverted duty structure and suggested the removal of central sales tax.