RBI sends out a signal in the forthcoming policy announcement that there would be no further tightening: CII

At the pre-monetary policy meeting held by the RBI, CII has suggested that the RBI sends out a signal in the forthcoming policy announcement that there would be no further tightening and the Central Bank would start to move to a more accommodative monetary stance. 

CII has also suggested that a separate window be opened by RBI for SME financing to ensure the availability of credit at affordable rates to this important sector. 

The apex association has also suggested that exports be provided priority sector lending status, at this time. CII has also asked the RBI to support the infrastructure sector through easing of norms. For this CII has suggested that the RBI consider forbearance for financing already made available to the infrastructure sector.

Statement of Mr Kris Gopalakrishnan, President, CII on the speech of Dr Raghuram Rajan, RBI Governor, on assuming office

Commenting on the statement made by Dr Raghuram Rajan, on assuming office as Governor of RBI, Mr Kris Gopalakrisnan, President, CII said that the pro-reforms approach adopted in the speech has sent a strong signal that the RBI would take significant steps to re-invigorate growth in the economy. RBI has been traditionally focussed on containing inflation.  We agree that the economy is passing through difficult times and we are certain that under his leadership, the RBI would make a shift towards an accommodative monetary policy which in turn would spur investments and bring growth back, said Mr Gopalakrishnan.

Complimenting the new Governor of RBI, on a seminal speech, Mr Gopalakrishnan said that the reform initiatives suggested by the RBI governor, particularly that of financial inclusion, facilitating investment flows, promoting financial savings, addressing the depreciation of the rupee and rising inflation are timely and reflect an innovative approach to tackle the headwinds facing the economy and revive investor confidence.       

The CII President said that Dr Rajan’s thrust on transparency and predictability is music to the ears of Industry and investors. Amidst various degrees of uncertainty owing to an array of global and domestic issues that the industry in India is faced with today, the RBI can be a pillar of strength and provide direction.

On the issue of internationalization of the Rupee and capital inflows, the RBI Governor’s statement is indicative of bold thinking and CII appreciates that. On the whole, the Governor has charted out a wide and ambitious canvas for himself and the Central Bank and we are certain that under his leadership this great institution would set new benchmarks not only for others in India to follow but would be a model for the world to emulate, Mr Gopalakrishnan said.