CII seeks interest rate cut by 100 basis points

NEW DELHI: The Confederation of Indian Industry (CII) have sought slash of 100 basis point in the interest rate by the RBI, stating that it would boost the country's economic growth.
Kris S Gopalakrishnan, CII president and Infosys co-founder stated, ''we would like to see a 100 basis point decrease in interest rates. Investments will automatically increase if the interest rates come down.''
He stated that in order to augment the economy and take the rate of growth in GDP back to 8-9 per cent within the next two years, it is important to starts investments.
He stated, ''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.''
In the midst of increasing inflation, the Reserve Bank of India (RBI) had been keeping an eye on the monetary policy. It is suggesting towards a smoother regime, the cut on key rates following a gap of nine months in January this year.
In order to remove the constraints 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 needed.