Home / Knowledge / News / Cut Interest Rates to strengthen economic fundamentals
Cut Interest Rates to strengthen economic fundamentals
23
Jan '08
Following the US Federal Reserve rate cut by 75 basis points, Mr Sunil Bharti Mittal, President, CII has strongly suggested an urgent need to cut interest rates to strengthen the macro economic fundamentals of India Economy in an increasingly uncertain global economic environment due to slowdown in the US economy.

With inflation under control and hovering around 3 per cent, it is the right time for RBI to cut repo and reverse repo rates that are currently at 7.75 per cent and 6 per cent respectively by 25 to 50 basis points to cover the relative competitive disadvantage India is currently in on macro economic fundamentals.

This move would strengthen the economic fundamentals and also boost investors' confidence, said the CII President, in a Press Release issued.

CII has further noted that the decline in IIP in the recent months could trigger a slowdown in the Indian manufacturing sector, especially in the consumer durables sector, which has witnessed a negative growth at -1.7 per cent during the period April-November 2007 when compared to the corresponding period last year, said the release.

In its recommendations for the quarterly review of Monetary Policy 2007-08, the CII President expressed concern over high interest rates affecting investments and growth and suggested that the time is right to recognize the need to reduce interest rates, which is pivotal to sustain 9 per cent plus GDP growth.

Furthermore, India would need investment rates in excess of 36 percent of GDP to achieve 9-10 per cent GDP growth in the medium term, which is again important to raise per capita income, reduce income inequalities and alleviate poverty, said Mr Mittal, in the release.

Mr Sunil Mittal strongly feels that reducing interest rate would go a long way in boosting demand and investments. It would also reduce the operating costs of exporting SMEs who have been facing decline in profit margins due to an appreciating rupee.

The impact of high interest rates have been severe on SMEs, especially exporters, who have been the worst hit due to the appreciating rupee which has eroded their profit margins significantly.

Confederation of Indian Industry


Must ReadView All

Apparel/Garments | On 25th Jun 2017

Half of 7,000 new apparel online each day target women

Adobe has released its first Digital Price Index for apparels,...

Textiles | On 25th Jun 2017

First Insight, Chico's FAS enter partnership

First Insight, a technology company transforming how retailers make...

Apparel/Garments | On 25th Jun 2017

Expand changing use of social and web resources

With over 400 million impressions to date and web traffic of over two ...

Interviews View All

Poojaa Kumar Deepak
Zeven

Zeven's performance sports apparel is designed for the Indian body type,...

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
June 2017

June 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search