PHD Chamber acknowledges RBI for appreciating Government’s efforts to support GDP growth

PHD Chamber acknowledges RBI for appreciating Government’s efforts to support GDP growth

PHD Chamber acknowledges RBI for appreciating Government’s efforts to support GDP growth

No.PR-39

June 7, 2018

New Delhi

 

PHD Chamber acknowledges RBI for appreciating Government’s efforts to support GDP growth

 

While appreciating the efforts of the Government in supporting the GDP growth for 2017-18 by focusing on rural housing and infrastructure and adherence to budgetary targets, Mr. Anil Khaitan, President, PHD Chamber of Commerce and Industry said that inflation should not be a major worry at this juncture as domestic reforms and good monsoon behavior would address the impact of external shocks.

 

The monetary policy committee in its 2nd bi monthly monetary policy statement 2018-19 has appreciated Government   for increase in GDP growth in 2017-18.  The GDP growth was higher by 0.1 percentage point from the 2nd advanced estimates released by CSO in the month of February 2018.

 

The GDP growth at 7.7% in the Q4 2017-18 is an reflection of the Government efforts to revive economic growth trajectory, said Mr. Khaitan.

 

We appreciate the statement of the monetary policy committee and look forward to the continuation of dynamic policy environment going forward, said Mr. Khaitan.

 

Mr. Khaitan urged the banking sector to hold the pass through effect of yesterday’s 25 basis points hike in repo rate, as they have a good space to absorb it.

 

We believe that the funding requirements of the industry especially the MSMEs are not impacted due to the marginal hike of 25 basis points in repo rate by RBI yesterday, said Mr. Khaitan.

 

We appreciate the relief provided by RBI in terms of ease in NPA classification norm for all MSMEs including non-registered under GST on temporary loan–repayment breather to 180 days, said Mr. Khaitan.

 

We appreciate the calibrated measures undertaken by the RBI to address inflationary scenario in India during the last four years, said Mr. Khaitan.

 

WPI inflation has declined significantly during the last four years from 5.2% in FY2014 to 2.9% in FY2018, he added.

 

In line with the decline in WPI inflation, CPI inflation decelerated from 9.5% in FY2014 to 3.6% in FY2018, said Mr. Khaitan. 

 

We look forward to softer policy stance to continue to strengthen the industry growth further and boost overall economic growth trajectory, going forward, said Mr. Khaitan.

Ends.

Koteshwar Prasad Dobhal

Consultant (PR)