Industry body Confederation of Indian Industry (CII) says it is expected that the Reserve Bank of India (RBI) will cut benchmark interest rates in February to support slow growth. Also said that the upcoming budget stressed the need to promote employment generation through targeted interventions for labour-intensive sectors. According to PTI news, CII President Sanjeev Puri said this on Wednesday. Puri is also the Chairman and Managing Director of ITC.
Hope to advance much needed labor reforms
According to the news, the CII chairman flagged sticky food inflation, highlighted the need to build agricultural resilience and decouple it from interest rates under the inflation targeting framework, arguing that it is due to climate change and is actually driven by monetary policy. Is not affected by. Finance Minister Nirmala Sitharaman is going to present the budget in Parliament on 1 February. The Confederation of Indian Industry (CII) chief said he is hopeful that the much-needed labor reforms will be taken forward by the government. This will benefit the economy and create more jobs.
Consumption should also increase
CII Chairman said that public expenditure is increasing and consumption should also pick up, adding that CII expects interest rates to be cut by the Reserve Bank of India (RBI). Puri also raised the issue of excess stock dumping by China globally, including in India, and asked the government to consider a quick way to impose minimum import prices and anti-dumping duty for specific sectors like steel, paperboard, chemicals and polymers. Urged.
Food inflation should be separated from interest rates, monetary policy
Puri said that in fact, we are also suggesting that in the inflation targeting framework, I think food inflation should be separated from interest rates, monetary policy. Food inflation is due to climate change and is not really affected by monetary policy. CII recommends setting up some kind of institutional arrangement to look into labor reforms in several sectors. Puri called for launching targeted interventions in labor-intensive sectors such as apparel, footwear, furniture, tourism and real estate, stressing that tourism could benefit from improved infrastructure conditions while apparel production linked incentives (PLI) ) can benefit from the 2.0 scheme.
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