RBI policy blocking new investments: FICCI
24 Aug 2012 7:09 AM IST
The Reserve Bank of India’s monetary policy is impeding the country’s growth and blocking fresh investments, Federation of Indian Chambers of Commerce and Industry (FICCI) president R V Kanoria said on Thursday.
‘The RBI policy of monetary tightening is inhibiting fresh investments and hurting growth. The government and RBI need to take steps to bring down the interest rates,’ he said.
The Indian economy has potential to grow at double-digit, ‘so why settle for an annual growth of 6-6.5 per cent.
Inflation is related more to supply side bottlenecks’, Kanoria said on the sidelines of a seminar here.
RBI has opted for high interest rate regime to rein in inflation which had been ruling much above its comfort level of 5-6 per cent. While wholesale prices based inflation was 6.87 per cent in July, at the retail level it was ruling close to double digit - 9.86 per cent.
He also called upon all state governments to rally round the Centre for earliest possible implementation of the Goods and Services Tax (GST).
‘There is a need to revisit the subsidies. Subsidies should be targeted and reduced so that only those deserving them are able to avail of the benefits. The subsidy in diesel is going to people who can very well afford to pay for it,’ he said.
‘The RBI policy of monetary tightening is inhibiting fresh investments and hurting growth. The government and RBI need to take steps to bring down the interest rates,’ he said.
The Indian economy has potential to grow at double-digit, ‘so why settle for an annual growth of 6-6.5 per cent.
Inflation is related more to supply side bottlenecks’, Kanoria said on the sidelines of a seminar here.
RBI has opted for high interest rate regime to rein in inflation which had been ruling much above its comfort level of 5-6 per cent. While wholesale prices based inflation was 6.87 per cent in July, at the retail level it was ruling close to double digit - 9.86 per cent.
He also called upon all state governments to rally round the Centre for earliest possible implementation of the Goods and Services Tax (GST).
‘There is a need to revisit the subsidies. Subsidies should be targeted and reduced so that only those deserving them are able to avail of the benefits. The subsidy in diesel is going to people who can very well afford to pay for it,’ he said.
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