Reserve Bank of India’s monetary policy affecting growth: FICCI

Reserve Bank of India (RBI)’s monetary policy affecting growth – FICCI. Federation of Indian Chambers of Commerce and Industry (FICCI) on Thursday said the Reserve Bank of India’s (RBI) current monetary tightening policy was hurting country’s growth and sought reduction of interest rates.

R.V. Kanoria the president of FICCI said on the sidelines of a seminar in Guwahati “The RBI policy of monetary tightening is inhibiting fresh investments and hurting growth. The government and RBI need to take steps to bring down the interest rates”.

Stating that Indian economy has potential to grow at double-digit, he said, “So why settle for an annual growth of 6-6.5 per cent. Inflation is related more to supply side bottlenecks.”

Mr. Kanoria also called upon all state governments to rally around the centre for earliest possible implementation of the Goods and Services Tax (GST).

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