Prime Minister Manmohan Singh on Saturaday informed industry leaders that he has asked the Reserve Bank to look into the issue of high interest rates coming in the way of reviving economic growth.
“The Prime Minister said he has requested the RBI to look into high interest rates,” FICCI President Harsh Pati Singhania told reporters after a meeting convened to take the views of industry captains on the state-of-the-economy.
The industry is concerned over prime lending rates ruling well above 10 per cent even when inflation has reached near- zero level.
The Prime Minister appreciated the industry’s views on the interest rates. RBI Governor D Subbarao was present at the meeting.
After 8.5-9 per cent GDP for four years, the country’s economic growth has slowed down. The current fiscal may see economy expanding by a slower seven per cent due to the impact of the global downturn.
Singh also sought views of the corporate honchos on India’s stand at the G-20 Summit in London on April 2, where the 20 most influential developed and developing countries would put their minds together to find a way out of the global crisis.
The corporate heads said India must express its strong opposition to global protectionism. The issue of dumping by China into the Indian markets was also raised at the meeting.