By IANS,
New Delhi : India’s industry leaders feel the Reserve Bank of India (RBI) should focus more on pushing up sectoral credit disbursements, an industry lobby said.
According to a report prepared by the Associated Chambers of Commerce and Industry (Assocham), almost 92 percent of the chief executives said the RBI in its monetary policy should focus on reviving the growth momentum.
The survey, titled ‘RBI Monetary Policy Prospects’, took stock of the opinion of the industry on the economic scene and actions required to bring the Indian economy back on growth trajectory.
The participants said credit flow into sectors such as textiles, gem and jewellery and IT should be boosted.
Construction is another sector where investments need to be boosted to weather the slowdown. Most participants said this was a good time for RBI to take a re-look at the stringent regulations imposed on the real estate sector.
Though 69 percent of the respondents appreciated RBI’s efforts at reducing interest rates, most were also alarmed over the falling growth in industrial production; the index for industrial production showed a 1.2 percent decline in February.
Bulk of the respondents said RBI should evolve new methods of enhanced money flow and rapid credit delivery.
The corporate debt market, which accounts for 14 percent of the total debt market in India, is not well developed. The industry feels policy-makers should look at the measures required adding vibrancy to the corporate debt market.
Corporate debt flotation fell a substantial 43.7 percent to Rs.4,160 crore in March from the previous month. The number of issues fell drastically to six, the report noted.
Assocham also urged RBI to take measures to ensure “financial inclusion” of the rural economy, which accounts for half of India’s GDP and has huge potential to fuel growth.
Hence, the industry group said, the government and central bank should micro-finance institutions and regional rural banks to push rural economy.