New Delhi: India Inc on Tuesday pitched for an interest rate cut, prioritising project clearances and protection of domestic industry from ‘dumping’ thro-ugh adjustment in duties. Prime Minister Narendra Modi on Tuesday met top CEOs, bankers, economists and ministers to discuss ways to bolster the economy amid global slowdown.
“The domestic investment is sluggish because of lack of demand and high cost of capital. Reduction in interest rates will kick start both consumption as well as investment,” said Ficci president Jyotsna Suri.
She said that while the National and Infrastr-ucture fund is in place more such funds managed by professional fund managers should be set up. “India has both demand and supply — a large young workforce and ample natural resources. We must push our global competitiveness in the current environment. While we should continue to market India as an attractive investment destination under the ‘Make in India’ campaign, it is equally important to encourage domestic investments,” said Ficci president.
“The Prime Minister encouraged industry to explore opportunities in the context of unfolding global economic conditions and offered all support,” said Sumit Mazu-mder, president, CII. He said that India benefits in terms of lower global commodity prices but would increasingly have to rely on domestic demand for sources of growth.
Mr Mazumder noted that two biggest issues are reviving demand and introduction of GST for adding economy-wide competitiveness. “It is important that India does not get clubbed with other emerging econo-mies. India’s economic fundamentals and current performance are superior to its peers,” said Mr Mazumder.
Mr Mazumder said that exports would be a key concern in the current environment. “In view of the mega trade agreements that are being developed, India needs to prepare by raising standards and regulatory infrastructure,” said CII chief. To counter the global demand slowdown, India should target rural demand at home by investing in agriculture, irrigation and rural infrastructure, said Mr Mazumder.
