Commerce Minister Anand Sharma asks RBI to cut rates.

Anand Sharma on Tuesday made a strong pitch for a cut in interest rates by the Reserve Bank of India (RBI) to revive the slowing economy.

"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," he said.

"These numbers have to change upwards in the shortest possible time. That would also positively reflect in the GDP growth."

Sharma observed, "While it is a difficult job for the central bank due to inflation, at the same time, economic activity has to continue. These are the lessons learnt from other countries experiences... people need employment.... We are focussing on job creation."

RBI is set to review the credit policy on June 18.

Asked about more than 20 per cent depreciation in the Indian rupee against the US dollar, Sharma said "the commerce ministry is in regular touch with the finance ministry and RBI.

"We are constantly talking to finance ministry and the Reserve Bank. We are for stable rupee... we hope the current situation won't last for long... we will be able to lift the investment sentiment."


Source : indiatoday.intoday.in