Narendra Modi asks banks to pass on rate cut benefits, says day-to-day decision-making a must

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Updated: Aug 12, 2019 4:19 PM

Prime Minister Narendra Modi has urged banks to pass on the benefits of lower interest rates to customers to boost investment-led growth and assured them that decisions taken in good faith and with sound business rationale would not face a witch hunt.

PM Narendra Modi, investment, entrepreneurship, banks, repo rate, rate cut, 100 lakh croreThe economic growth is not possible if bankers do not take decisions on a day-to-day basis, Narendra Modi said in an interview.

Prime Minister Narendra Modi has urged banks to pass on the benefits of lower interest rates to customers to boost investment-led growth and assured them that decisions taken in good faith and with sound business rationale would not face a witch hunt. The economic growth is not possible if bankers do not take decisions on a day-to-day basis, Narendra Modi said in an interview. The Narendra Modi government has set a target of investment worth Rs 100 lakh crore to make India a $5 trillion economy in the next five years. At present, India is facing a slowdown in investment, demand, and consumption.

The government is focussed on understanding and solving the problems on a day-to-day basis and budget is neither the beginning nor the end of the work in economic policy, he said. The Prime Minister explained that economic growth means wealth creation for the nation, which means more disposable income in the hands of people. It doesn’t mean more money to the state exchequer. The policies are focussed on improving the competitiveness through long term reform measures and not short term benefits from the transient disruptions, he further added.

The Modi-led government has consistently aimed towards entrepreneurship and seeking higher investments for businesses in India. PM Modi has pointed out that the government wants the investors to earn more, invest more and to create more jobs in the country. The government wants entrepreneurs to get a higher yield on productivity and profits, wants the industry to grow at a higher speed and scale and wants the Indian businesses to get access to bigger markets in India and abroad.

The government has assured honest and law-abiding businesses of all possible support from its end and has urged the industrialists to proceed with their businesses and to complete their investment plans without confusion. Drawing attention to public sector enterprises, he said that the strategic disinvestment of select CPSEs is a priority area of the government. He also mentioned that improving the competitiveness of Indian exporters is more important over just looking towards boosting exports by incentives.

 

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