From rxpgnews.com
Indian industry chambers hail RBI's monetary policy
By IANS,
Apr 24, 2007 - 5:38:20 PM
New Delhi, April 24 - Leading Indian industry chambers have unanimously hailed the central bank's credit and monetary policy for the fiscal 2007-08 presented Tuesday, particularly lauding its effort to keep the interest rates intact and harness inflation.
India Inc has also hailed the Reserve Bank of India's - move to emphasise and sustain the country's economic growth and the fact that it has not gone overboard in controlling inflationary activities.
'With no upward increase in key rates, RBI Governor - has sent a clear indication that he would like to see the effects of the earlier rate hikes play out before taking any further measures in this area,' said R. Seshasayee, president, Confederation of Indian Industry -.
'Also, it is an indication of the RBI's acknowledgement that growth cannot be traded off in the combat against inflation. This has sent the right signals to industry and the market,' he added.
The RBI, in its credit policy, has made a GDP growth projection at 8.5 percent as against 9.2 percent last year.
The Associated Chambers of Commerce and Industry - said: 'It - has presented a balanced credit policy to contain inflation, bring in sound financial management and project a realistic GDP growth of 8.5 percent for 2007-08.'
Assocham said the policy aims at greater price stability by setting the inflation target at five percent in the current fiscal.
According to Habil Khorakiwala, president, Federation of Indian Chambers of Commerce and Industry -, 'The RBI has responded remarkably well in a livewire fashion to developments in the Indian economy.'
However, FICCI has expressed concern that the RBI might resort to 'harsh' measures that could impact credit rate growth adversely.
Deepak Pahwa, president, Indo-American Chamber of Commerce -, said in a statement: 'The steps contemplated in the policy will adequately address the inflationary pressure without adversely affecting growth impulses on the one hand and hardening of the rupee on the other.'
However, the policy was not welcomed by Indian exporters. According to the Federation of Indian Export Organisations -, the credit policy lacked effective measures to enable exporters to counter losses due to appreciation of the rupee.
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