conducive for growth.
He emphasised that a major role has to be played by the manufacturing sector, corporate sector in tackling these issues.
"Unless you use the technology, innovation in bring down the manufacturing cost to less than 1 per cent, we will not be able to have inflation low and interest rate will not come down," he advised.
Asking lenders to give more attention to agriculture, SME retail, Chakrabarty said banks have to play an important role. No country can have sustainable growth unless SME contributes.
"We have to bring agricultural productivity if we have to grow. Then agricultural people have to shift to then manufacturing and we have to mechanise the agriculture," he said.
"Today corporate sector gets money at 10 per cent, 11 per cent, 12 per cent, SMEs are getting money at 15 per cent, 16 per cent. Unless the SME sector is sustained no country will be able to build a manufacturing base," he added.