Upset over “disturbing” decline in industrial growth, the Commerce and Industry Minister, Mr Anand Sharma on Tuesday made a case for the Reserve Bank to cut interest rates in its forthcoming credit policy review.
“I would urge them (RBI) to look at the present depressed investment climate and the disturbing numbers of fall in manufacturing core sectors and IIP (Index of Industrial Production) numbers.
“Therefore, these numbers have to change upwards in a shortest possible time that would also positively reflect in the GDP growth” he told newspersons here.
Mr Sharma said while it is a difficult job for the central bank to have a balance between growth and inflation, “at the same time economic activity has to continue. These are the lessons learnt from other countries experiences… people need employment... We are focusing on job creation“.
The country’s Gross Domestic Product (GDP) growth touched a nine—year low of 5.3 per cent in the last quarter of the previous fiscal, which ended with 6.5 per cent expansion.
The industrial growth shrank to 3.5 per cent in March. The RBI is set to review the credit policy on June 18.