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Industry unhappy on RBI's move

July 30, 2013 13:21 IST

Expressing disappointment over the RBI's move for not cutting the key policy rates, India Inc on Tuesday asked the government to take immediate action to revive growth and boost investments.

"We are disappointed. The RBI has also cut down the GDP forecast for FY'14 to 5.5 per cent, which is clearly reflecting the reality," CII Director General Chandrajeet Banerjee said.

He said economic growth needs to picked up  and for that "moderate of interest rates are very important". Sharing similar views former Ficci President R V Kanoria said that the investment environment of the country should be improved.

"We have to reignite the passion of economic growth by building confidence in the economy. Enhancing investments are the need of the hour," Kanoria said.

Similarly, Rajiv Kumar, a senior economist, said that the GDP forecast would come down further. "The RBI is sacrificing the growth to maintain stability in the domestic currency," Kumar added.

Weighed down by a weak rupee, the Reserve Bank chose to keep all key interest rates unchanged and asked the government to take urgent steps to rein in the high current account deficit.

Lowering the GDP growth projection for the current fiscal to 5.5 per cent from 5.7 per cent, the central bank said the external sector is the "biggest threat" to economic stability.

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