CII recommends further measures to deal with economic situation
In its meeting with the Banks and Economic Secretaries, chaired by the Cabinet Secretary CII made further recommendations for dealing with the current economic slowdown. If the yields on Government securities remain high, banks will not be able to reduce their lending rates and Indian companies and consumers will continue to face one of the highest interest rates in the world. CII had suggested the formation of an informal group comprising banks, the Government, RBI and the industry to deal with sectoral issues. CII also recommended some changes in the steps taken by the RBI. CII has made recommendations for ensuring an improved flow of funds to specific sectors. These included infrastructures, NBFCs, automobiles and auto components, housing, SMEs, textiles, gems and jewellery and exports. CII suggested that long-term loans on concessional terms be provided to qualified Indian exporters with good track record in past three years. These loans would help in providing marketing assistance to exporters, especially from small and medium sized enterprises.
Source: CII