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Industry seeks cuts in interest rate and tax
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Industry seeks cuts in interest rate and tax
New Delhi: Bankers and Industry leaders in the country hope further reduction in the interest rates from the Reserve Bank of India (RBI), and they expect that the government would cut taxes to accelerate the economic growth. They also expect that the RBI would lower the rate at which it lends to banks by 200 basis points in six months, reported Financial Chronicle.
At the occasion of India Economic Summit 2008, business leaders sought for more measures, including a cut in bank deposits held in reserve by RBI and the amount of money banks must park in liquid assets such as government securities.
They also demanded the government to cut taxes on goods and services to help bring down prices.
Business leaders from 35 countries are participating in the three-day India Economic Summit. K V Kamath, Chairman and CEO, ICICI Bank said, "The liquidity situation in the banking system was extremely tight only a few weeks ago, but efforts by RBI and the government have helped ease liquidity substantially."
"We expect further monetary action as inflation has come down considerably. We expect the rate at which RBI lends to us to come down by 200 basis points in the next three to six months," he said.
"Even as the liquidity has eased considerably mainly due to RBI measures, banks are not lending to customers and hence, demand is not picking up. If banks do not lend, the whole purpose of monetary measures by regulators gets defeated," pointed out Rahul Bajaj, Chairman, Bajaj group.
"We have to save our industry, but not by a beggar-thy-neighbor policy", Founder and Chairman of Satyam Computer Services B Ramalinga Raju said. "Competitiveness will be the key driver; protectionism will be dangerous if it comes in the way of entrepreneurship," he added.
Source:
http://www.siliconindia.com/shownews/48874
At the occasion of India Economic Summit 2008, business leaders sought for more measures, including a cut in bank deposits held in reserve by RBI and the amount of money banks must park in liquid assets such as government securities.
They also demanded the government to cut taxes on goods and services to help bring down prices.
Business leaders from 35 countries are participating in the three-day India Economic Summit. K V Kamath, Chairman and CEO, ICICI Bank said, "The liquidity situation in the banking system was extremely tight only a few weeks ago, but efforts by RBI and the government have helped ease liquidity substantially."
"We expect further monetary action as inflation has come down considerably. We expect the rate at which RBI lends to us to come down by 200 basis points in the next three to six months," he said.
"Even as the liquidity has eased considerably mainly due to RBI measures, banks are not lending to customers and hence, demand is not picking up. If banks do not lend, the whole purpose of monetary measures by regulators gets defeated," pointed out Rahul Bajaj, Chairman, Bajaj group.
"We have to save our industry, but not by a beggar-thy-neighbor policy", Founder and Chairman of Satyam Computer Services B Ramalinga Raju said. "Competitiveness will be the key driver; protectionism will be dangerous if it comes in the way of entrepreneurship," he added.
Source:
http://www.siliconindia.com/shownews/48874
