CEOs want another rate cut by central bank

Calling the government’s stimulus package 'highly inadequate' for creating demand, retaining and generating jobs for skilled and semi-skilled workforce, 90 per cent chief executive officers from real estate, steel, cement, automobile, engineering and SMEs have urged the Reserve Bank of India (RBI) to further slash cash reserve ratio (CRR), repo rate and reverse repo rate by another 200 basis points to pump in required liquidity in system, according to a quick survey of 150 CEOs done by the industry body Associated Chambers of Commerce and Industry of India (Assocham).

Of 150 CEOs (companies with turnover ranging between Rs 500 crore and Rs 4,000 crore) quickly surveyed by Assocham Business Barometer (ABB), 90 per cent of them described the package insignificant enough to save jobs, create more employment opportunities and shield economy from recessionary trends.
According to them, it would only have marginal impact on industrial revival as textiles, real estate, cement, steel, automobile, engineering, SMEs etc. needed bolder doses of liquidity at relaxed interest rates.

 

At a time when the whole world is witnessing serious recession pressures, India needs to protect its economy by all possible means from adverse global impact,” said Sajjan Jindal, president, Assocham while releasing the survey here today.

About 85 per cent of the CEOs felt that the revival package wouldn't not be able to push GDP growth significantly. Also, industry was not optimistic regarding improvement in employment scenario from growth package.

The CEOs felt that enough relief measures were not taken for sectors like real estate, exports, SMEs, textiles, which continue to be under immense pressures with no option but to downsize their work force both skilled and unskilled.