A day after the Prime Minister reiterated the need for infrastructure development, Aditya Puri, MD, HDFC Bank says that big ticket reforms are not the need of the hour. In an exclusive interview to CNBC-TV18, Puri questioned India's industrial growth data.
"People have talked too much about the big ticket reforms, which are not as important as fixing basic problems. So since he (the Prime Minister) is involved and we have the highest respect for his capabilities. He has worked things through before. I think the basics should be sorted out- on power, iron ore, on food, and pricing of petrol. I strongly believe that India's structural story is still intact." Also watch the accompanying video
On the impact of interest rates on projects and investments, Puri added, "I strongly believe that rather than change policy rates the Reserve Bank should infuse liquidity into the system. So though a 1-1.5% cut in CRR will actually give you a 50 bps reduction in interest rate, it will largely be ignored by the economy if there is no demand for assets."
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