NEW DELHI: The Commerce and Industry Minister Anand Sharma has favoured a reduction in interest rate in the month-end policy review by Reserve Bank of India (RBI) as it will promote both growth and exports.
Sharma said, “The cost of the credit has to be low so that the Indian industry remains competitive in the global context. I have always been an advocate of creating an environment where industry, the private sector, invest more.”
Although the minister maintained that RBI has a duty to perform and the government should ensure that the dynamic economic activity.
“Though there are certain measures which are required when it comes to liquidity and its impact on inflation. We cannot starve the industry or bring investments down which has a huge social dimension particularly on employment creation and sustaining jobs,” he added.
Last month, inflation slipped to 7.25 per cent as against 7.55 per cent in the previous month.
Overall food inflation increased to 10.81 per cent in June, as compared to 10.74 per cent in May. In June 2011, inflation rate in this category was 7.6 per cent.