India Inc pitches for rate cut, IIP growth slips to 3.1%

The central bank status quo on rates has disappointed the industry as there was a room for reduction in key policy rate, said industry body Assocham.

The industry repeated its demand for an interest rate cut by the Reserve Bank of India (RBI) to boost growth and consumer demand as India’s industrial output growth slipped to 3.1 per cent in April.
 
The central bank status quo on rates has disappointed the industry as there was a room for reduction in key policy rate, said industry body Assocham, highlighting the need for creating conducive environment for investments.
 
In its latest monetary policy review, the RBI had left the repo rate unchanged at 6.25 per cent for the fourth consecutive time. 
 
Due to poor performance by manufacturing, mining and power sectors, industrial production growth slowed to 3.1 per cent in April along with lower off take of capital goods and consumer durables. 
 
Ficci President Pankaj Patel said, "A more accommodative monetary policy with lower interest rate would stimulate consumer demand." 
 
(Source: Agency)  

Add new comment