Home / Knowledge / News / RBI must reduce interest rates, FICCI
RBI must reduce interest rates, FICCI
24
Jan '08
The US Fed cut is a signal for the soft interest rate regime globally. RBI should follow the cue and cut the Interest rates to support the economic growth.

RBI must cut the repo rate by at least 25 basis points this month itself and then follow up with further cut of another 25 basis points within next two months.

We have time and again reiterated through FICCI studies and surveys, the adverse impact that the high Interest rates have had on the growth of certain sectors of the economy especially in the SME segment, said FICCI President.

The Industrial Production Index has shown a clear decline, which is a sign of slowdown. The recent Business Confidence Survey of FICCI too clearly signals a fall in business confidence and possibility of imminent slowdown of several sectors.

FICCI's latest BCS, released in December 2007, showed that while initially the high interest rates affected the consumer goods industry, now even the intermediate and capital goods sectors are getting impacted.

The policy implication emerging out of the survey is very clear – RBI must ease the monetary policy stance and slowly make it more accommodative. Failure to do this would send the industry into a downward spiral and make recovery particularly difficult.

Now that the inflation is also down to tolerable limits, we do hope that RBI would re look at the interest rates and some measures would be taken soon to move towards a soft interest rate regime.

An impetus from RBI in form of easy Interest rate regime would help provide necessary impetus to the growth. The RBI must shift from its emphasis on controlling inflation to keeping growth going, said FICCI President.

Federation of Indian Chambers of Commerce and Industry

Must ReadView All

Textiles | On 25th May 2017

Huntsman and Clariant to have merger of equals

Huntsman Corporation and Clariant have announced that their boards of ...

Courtesy: CBRE

Apparel/Garments | On 25th May 2017

European cities preferred for retailer expansion: CBRE

European cities were the preferred new destination for international...

Apparel/Garments | On 25th May 2017

Guess records $458.6 million revenue for Q1 2018

For the first quarter of fiscal 2018, the net revenue of American...

Interviews View All

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Urs Stalder
Sanitized AG

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

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

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:
May 2017

May 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