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'Bank rate cut would have boosted GDP growth'
November 03, 2003 18:24 IST
The Indian Chamber of Commerce on Monday welcomed the RBI Credit Policy for announcing some 'positive' measures for exporters, small-scale industries and agriculture sector, but said a bank rate cut would have boosted the GDP growth rate for the economy.
"Given the extremely positive economic environment, a bank rate cut of at least 50 basis points would have triggered a high rate of industrial and economic growth," ICC president Vikram Thapar said in a statement in Kolkata.
He said the positive outlook in terms of industry performance, foreign exchange reserves, a resurgent capital market and increasing exports, "indeed called for a reduction in interest rates."
The ICC, however, welcomed RBI Governor Dr Y V Reddy's initiative to allow flexibility to exporters in respect of outstanding export dues as well as the normal period of realisation beyond 180 days.
Thapar also hailed the steps taken to simplify procedures for SSIs and credit delivery to the agriculture sector.
PTI