The RBI's decision to leave the rates unchanged has put India Inc in good cheer. However, there are concerns about the need to control inflation and focus on steadying the flow of liquidity into the economy.
India Inc is bracing for a rate-cut in April when more inflation data will start to come in. Industry representatives have also called attention to the falling GDP rate which is beginning to choke credit and restrain growth. Souring the positive mood is government indecision and political paralysis.
Speaking to CNBC-TV18, Muthuraman, former vice-chairman, Tata Steel stated that untouched rates would, in reality, postpone the capex cycle and slow down industrial growth further. He expressed concerns about rate of growth in FY13 and said that the coming fiscal would be a tough year.
In his reaction to the policy, R Shridhar, MD, Shriram Transport Finance Co Ltd said that he was confident of the RBI
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