Ahead of the credit policy review on October 4, the chamber has also written to the Reserve Bank of India and the Monetary Policy Committee to cut the interest rates by at least 25 basis points, given the challenges being faced by the economy which needs immediate measures for revival of growth.
“At least 50 basis points elbow room can be taken with regard to 3.2% fiscal deficit for the current year and the next financial year. The fiscal targets can be taken to 3.7%, but with a strict oversight over the quality of expenditure so that the extra resources are wisely spent in building and reviving investment in infrastructure sectors like roads, power, railways, ports etc,” the ASSOCHAM Secretary General, DS Rawat said in the release.
Stressing that the rupee is still over-valued, the chamber said the “effective exchange rate of INR has appreciated against our trading partners. This has an adverse impact on exports. RBI should be persuaded to target the real effective exchange rate more effectively”.
Besides, the problems being faced by the exporters arising out of the GST implementation should be addressed to without loss of time. “Exports picked up in August and we need to maintain and build the momentum,” the chamber said.
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