The Confederation of Indian Industry (CII) pressed for a 100 basis point cut in interest rate by the RBI saying that it will push economic growth in the country.
?We would like to see a 100 basis point decrease in interest rates. Investments will automatically increase if the interest rates come down,? said CII president and Infosys co-founder, Kris S Gopalakrishnan.
He added that to revive the economy and take the rate of growth in GDP back to 8-9 per cent in the next two years it is essential to kick start investment. ?Early implementation of Goods and Services Tax and Direct Taxes Code is also important. Steps like early implementation of GST would help in adding 1-1.5 per cent in the GDP,? he said.
Due to concerns over high inflation, the RBI had been keeping a tight leash on its monetary policy. Indicating towards a leaner regime, RBI cut key rates after a gap of nine months in January this year.
To clear the bottleneck for the infrastructure sector, an independent PPP Commission with authority and jurisdiction to renegotiate terms of contract, access to financing, effective dispute resolution mechanism are required. Address coal and gas shortages in the power sector besides accelerating exploration of these fuel and production in the country. CII also demanded a need for independent regulatory authorities in sectors of scarce resources like coal, real estate and health.