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 22nd Sep 2017

Govt announces new duty drawback rates for garments

The Government of India has today announced the new duty drawback...

Courtesy: ITMA

Textiles | On 22nd Sep 2017

ITMA 2019 to focus on smart garment technologies

ITMA 2019, the world's largest textile and garment technology...

Apparel/Garments | On 22nd Sep 2017

New US FTC rule for RN used on textile product labels

The US Federal Trade Commission recently streamlined requirements...

Interviews View All

Rahul Bhadani
Looksgud

Navigating through catalogues is a bit hasslesome

Headhonchos
Indian textile value chain

Adopt innovative techniques, go for automisation rather than being...

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

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

September 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


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