Bookmark Kaumudi Online  Bookmark this site  Editor@Kaumudi  |  Marketing  Print Advt rates  |  Calendar 2012        Go!    
 
 
October 22, Sunday 2017 1:37 PM       

       HEADLINES: Sangh Parivar will divide India using Taj Mahal as weapon: Thomas Isaac                                              Youth held for molestation bid in Kozhikode                                              Bofors: CBI seeks govt’s nod to reopen case                                              Maharashtra: 10 killed as truck overturns in Sangli                                              MSRTC calls off five-day strike                                              Kamal Hassan shows support to ‘Mersal’                                              Melania Trump donates inaugural dress to national museum                                              Japan votes: Incumbent PM Abe appears headed to victory                                              Spain likely to seize powers from Catalonia                                              Third gold for Anumol                                              Kaumudi Facebook
       BUSINESS Next Article: Kochi Shipyard makes strong market debut after $225 million IPO  
       FICCI for substantial slash in policy rates by RBI
 
         Posted on :00:00:49 Aug 12, 2017
   
A A
       Last edited on:00:00:49 Aug 12, 2017
         Tags: FICCI for substantial slash in policy rates b
 

NEW DELHI: The Federation of Indian Chambers of Commerce and Industry (FICCI) urged for the need to enable a further cut down of policy rates by the Reserve Bank of India (RBI), to spur demand and help ease the pressure on corporate balance sheets.

"Our reading of the Economic Survey confirms that there is a need to substantially cut down the policy rates by the RBI and ensure its full transmission by the banks in the form of lower lending rates for consumption and investment activities. A cut in interest rates would spur demand, push up capacity utilisation rates and help reduce pressure on the corporate balance sheets thereby enabling them to plan for fresh investments. Unless the private investment cycle revives, sustaining growth and generating jobs in large numbers will be difficult," the chamber noted.

Responding to the Economic Survey 2016-17 Part II which was tabled in Parliament earlier today, the FICCI stated that deflationary impulses in the economy need to be countered through all possible policy levers.

"The survey clearly lays out the opportunities and the risk factors that could have a bearing on the near to medium term growth performance of the Indian economy. While developments such as introduction of the Goods and Services Tax (GST), in principle decision to privatise Air India, steps taken to address the twin balance sheet problem and the continuous roll out of reforms across segments lend confidence, there is an element of anxiety on account of factor such as farm loan waivers, dip in non-cereal food prices and weakening performance of sectors such as power and telecommunications," FICCI stated.

Drafted by Chief Economic Advisor Arvind Subramanian, the survey reflected strong growth in tax revenue, sustenance of the pace of capital spending and a consolidation of non-salary or pension revenue expenditure.

As per the survey, the Union Budget for 2017-18 opted for a gradual fiscal consolidation path: the fiscal deficit is expected to decline to 3.2 percent of GDP in 2017-2018.

The fiscal deficit target of three percent of the GDP under the FRBM framework is projected to be achieved in 2018-19.

The survey mentioned that inflation is expected to remain below the RBI's four percent target through to the end of the fiscal year and described scope for monetary easing as "considerable".

However, it indicated that sluggish growth and increasing indebtedness in some sectors of the economy have impacted the asset quality of banks and this is a cause for concern.

A A
       BUSINESS
Next Article: Kochi Shipyard makes strong market debut after $225 million IPO
 
 
BUSINESS HEADLINES
Now, Air India looks for Rs 1,500 crore short term loans  
Govt incentivises online purchase, payment of Gold Bonds  
Modi praises IFFCO's efforts in farmers upliftment  
UAE Exchange India won Indcom Award 2017 for Best Digital Media Campaign  
Bajaj Finserv slashes personal loan interest rate to 11.99%  
AI looks for Rs. 1,500 crore short term loans  
Paytm reports Mega-Dhanteras sale  
Reliance Jio hikes 84-day plan to Rs. 459  
US dollar ends higher against rupee  
Gold worth inr 120cr transacted within 6 months: Paytm  
Commodities worth over Rs 120 cr procured at MSP in R'sthan  
Nifty hits fresh high; Sensex slips from record  
Sensex, Nifty retreats from record on profit booking  
Reliance Retail to be biggest threat to Amazon, Flipkart: Pai  
India undergoing 'exciting digital transformation: IMF  
Sensex hits new peak of 32,687.32; Nifty at 10,242.45 pts  
Digital India to contribute 30pct to India's GDP by 2025  
Bring real estate under GST: Sisodia writes to Jaitley  
IMF favors three structural reforms in India  
India must go for pollution-free methanol as fuel: Gadkari  
Indian Railways to start cheaper, faster Rajdhani between Delhi-Mumbai  
Help young entrepreneurs to set up startups: AP IT Minister Lokesh to officials  
Madhya Pradesh slashes VAT on petrol by 3%, diesel by 5%  
Sensex climbs 211 pts on positive economic data points  
RBI sets rupee reference rate at 65.1003 against US dollar  
 
Should Kummanam apologise to Kerala as remarked by the CM?
yes
 
no
 
no opinion
 
 
 
Home Kerala India World Business Sports Sci&Tech Education Automobile CityNews Movies Environment Letters 
© Copyright keralakaumudi Online 2011  |  Reproduction in whole or in part without written permission is prohibited.
Head Office Address: Kaumudi Buildings, Pettah P.O, Trivandrum - 695024, India.
Online queries talk to Deepu Sasidharan, + 91 98472 38959 or Email deepu[at]kaumudi.com
Customer Service -Advertisement Disclaimer Statement   |  Copyright Policy