According to a recent press report Mr. B. Muthuraman, President, Confederation of Indian Industry has said that the Central bank should put a pause to its interest rate hikes as the consumer and capital goods segments are showing slow growth
According to Mr. Salil Bhandari, the Punjab, Haryana Chamber President, it is essential to ensure credit availability to industry at reasonable rates and moderation in input costs. He said that GDP growth in the second quarter of 2012 may fall below 7.5 per cent.
Mr. Harsh Mariwala, President, FICCI said that the growth in consumer goods sector, especially consumer durables, is not up to the expectation especially in the festive season. He added saying that the demand for investment has also been affected in the last few months and that the growth in industrial sector and investments is expected to be low in coming months as the impact of rising cost of credit would continue.
The RBI is the central banking institution of India and it controls the monetary policy of the rupee. The regulator has recently hiked key interest rates by 25 basis points, which is its 12th such hike since March, 2010.
chambers, the regulatory body – Reserve Bank of India should consider the sluggish growth rate of the industry before declaring the hikes in the interest rate, the industry present growth is visible in both the consumer and capital goods segments said by Mr. B. Muthuraman, President, Confederation of Indian Industry.
The industry performance is estimated about 4% in July-August 2011-2012, it is compared with 7.2% in the year-ago period.
Through monetary policy the RBI has hiked the key policy rate, repo rate, by 350 basis points since September 2009.
Addition to that the President from Haryana Chamber, Mr. Salil Bhandari said that the availability of credit at reasonable rates to the industry and restraint in input costs is required.
He added the estimated GDP Growth may fall below 7.5% in the second Quarter 2012. To arouse the domestic demand it requires some tightened monetary measures.
Mr. Harsh Mariwala President FCCI the consumer durable segment said that the growth rate is very low, even during the festival season. By Analysing the past few months data the impact of investment decision creates the negative Growth (-1.8) in machinery during April-August 2011.