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Our Bureau

Chennai, Nov. 6 The Confederation of Indian Industry has called for further infusion of liquidity into the system, by a further reduction in the repo rate by at least 150 basis points and another cut in the cash reserve ratio by 250 basis points.

“RBI could also consider further reduction in SLR by 2 percentage points and allowing oil and fertiliser bonds acceptable for SLR,” Mr R. Seshasayee, Chairman, CII Committee for Economic Affairs, today told journalists here.

CII has further suggested removal of caps on interest rate payable for deposits made by non resident Indians as well as raising, perhaps between $ 5 billion and $ 10 billion” through a bond issue abroad, on the lines of the ‘Resurgent India Bonds’.

(Another industry body, the Associated Chambers of Commerce and Industry, had made an identical plea.)

Mr Seshasayee said that the fundamental issues were liquidity and confidence and called upon the government to buttress both.

He said attracting overseas capital would help bring in liquidity, arrest the rupee slide and mobilise overseas savings for funding Indian projects.

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