Home / Knowledge / News / CII - Do not sacrifice growth over price stability
CII - Do not sacrifice growth over price stability
07
Apr '08
Confederation of Indian Industry (CII) expresses its concern over the increase in WPI inflation and opines that current inflation has been a supply side driven phenomenon which needs to be dealt with cautiously so as to not sacrifice growth over price stability.

While CII appreciates the tight position of RBI in dealing with Growth versus Stability, any monetary measures that are aimed at controlling inflation should be judiciously employed so as to not sacrifice growth.

CII notes that the economy is currently facing twin problems of an emerging slowdown and moderately high rate of inflation especially in food grains, basic metals, metals and metal products.

The Index of Industrial Production (IIP) has moderated during the first 11 months of the current fiscal year and the IIP is expected to further decline in terms of growth to end the year with lower growth of industrial production.

In this scenario, CII submits that the signalling of RBI on its stance on the monetary policy measures would be of pivotal importance. While there are three options for RBI in terms of signalling, namely,

1.Increase interest rate and indicate that inflation is out of control and growth can be sacrificed to control inflation.

2.Maintain status quo and allow the fiscal measures to contain inflation, while signalling that it has the economy under control, and this would also help manage inflationary expectations.

3.Reduce interest rate and indicate that it is pro-growth even in a situation of moderately high inflation. This stance must be backed by fiscal measures.

Must ReadView All

Apparel/Garments | On 28th May 2017

Over 45% US retailers to use AI in next 3 years: Report

Over 45 per cent retailers in the US plan to utilise artificial...

Neelesh Hundekari speaking at the event. Courtesy: Subir Ghosh

Textiles | On 27th May 2017

Fabric of Change initiative announces €250000 scaling fund

The Fabric of Change initiative of Ashoka and the C&A Foundation is...

Apparel/Garments | On 28th May 2017

Naked Brand, Bendon sign agreement to reorganise

Naked Brand Group, a fashion and lifestyle brand, and Bendon Limited, ...

Interviews View All

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Robert Brunner
Devereux

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

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Madhu Jain
Madhu Jain

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

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