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Industry body CII today pitched for a 0.50 per cent cut in lending rates from the Reserve Bank in its monetary policy review next month to boost domestic investments.
“RBI must look at 50 basis points (0.50 per cent) cut and over the next fiscal we look at 100 basis points (1 per cent).
There is a possibility of further rate cut and we are very positive (about it),” CII President Kris Gopalakrishnan told reporters here.
RBI will announce monetary policy for 2013—14 on May 3.
Setting the agenda for 2013—14 as accelerating economic growth through innovation, transformation, inclusion and governance, CII President said the country could achieve 6.5 per cent growth this fiscal and it could go up to a level of 8—9 per cent in next two to three years.
“Country’s GDP has significantly come down (last fiscal)... our top priority is to look at achieving 6.5 per cent growth in current fiscal and 8—9 per cent in next two to three years,” said Gopalakrishnan, adding that the economic growth could only address issues, including job creation, current account deficit (CAD), etc.
Stating that the revival of economy is imperative, Gopalakrishnan termed the rising CAD as a major challenge before the country which could have negative impact on economic revival ahead.
“CAD continues to be on high side due to declining exports... CAD is the key worry we have,” he said.
CAD exceeded 5 per cent of GDP in the first nine months of April till December 2012, he said.
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