Home / Knowledge / News / Textiles / Assocham, Ficci welcome RBI rate cut
Assocham, Ficci welcome RBI rate cut
05
Apr '16
Industry bodies Assocham and Ficci have welcomed the 25 basis point repo rate cut announced by the Reserve Bank of India today.

Assocham President, Sunil Kanoria said that though India Inc would have liked at least a 50 basis points cut in the policy interest rates by the RBI, the measures announced to inject enough liquidity into the system should enable banks to cut lending rates.

"The transmission in the interest rates at the ground level should factor in not only today's reduction in the Repo rate but also the new lending norms being affected by the regulator. Besides, adequate liquidity injection by the RBI should ease concerns of the banks over falling growth in deposits," said Kanoria.

However, the Assocham chief said that given the kind of stress in large sectors of the economy, particularly in the manufacturing, construction, infrastructure, the policy interest rates cut should have been bolder.

"Eventually, lower interest rates would have an all-round positive impact in terms of reducing the non-performing assets, increased investment, aggregate domestic demand and overall vibrancy in the system," said Kanoria. "Lower food inflation should have encouraged the RBI to be more accommodative."

Sharing the concerns of RBI over the impact of 7th Pay Commission on inflation, the Assocham president said, "The pay commission would not only lead to higher inflation but would have an adverse impact on the fiscal situation of the country."

Welcoming the reduction in repo rate by 25 bps, Harshavardhan Neotia, President of Ficci said, “RBI's decision to cut the repo rate and follow accommodative monetary policy stance is a positive step, given the favourable conditions with respect to inflation and fiscal stability. Ficci has for long advocated the need for greater cuts in the policy rate to stimulate demand and investments in the economy.”

“Additionally, several steps announced to ease liquidity should help in effective transmission into lending rates by the banks. The banks already have enough room to pare the lending rates owing to recent reduction in small savings interest rate up to 1.3 per cent as well as the introduction of the marginal cost of funds based lending rate (MCLR). We now look forward to banks taking the lead in supporting the investment cycle and improving economic growth”, Neotia added. (SH)

.

Fibre2Fashion News Desk – India

Must ReadView All

Textiles | On 30th May 2017

CAI estimates 2016-17 cotton crop at 340.5 lakh bales

Cotton Association of India (CAI) has retained its earlier estimate...

Courtesy: World Bank/Claude Renault

Textiles | On 30th May 2017

India’s economic fundamentals remain strong: World Bank

India remains the fastest growing economy in the world – economic...

Courtesy: Dollar Industries

Apparel/Garments | On 30th May 2017

Dollar Industries registers Rs 906 cr turnover in FY17

Hosiery major Dollar Industries Limited registered a turnover of Rs...

Interviews View All

Asim Dalal
Indo Count Retail Ventures

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

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Kai Poehler
Voith Paper GmbH & Co. KG

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

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

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