CII Urges RBI Rate Cut to Spur Growth Amid Inflation Challenges

The CII anticipates a rate cut by the RBI to bolster growth as its President, Sanjiv Puri, highlights the need for job creation and labor reforms. He emphasizes de-linking food inflation from interest rates and addressing the global issue of China's stock dumping.

In anticipation of the next monetary policy review, the Confederation of Indian Industry (CII) is pressing the Reserve Bank of India (RBI) for a rate cut to stimulate growth. CII President Sanjiv Puri emphasized the necessity for job creation and labor reforms in sectors like apparel and tourism.

Puri, in a detailed interview, pointed out that the persistent food inflation is a consequence of climate change, rather than an effect of monetary policy. He suggested de-linking it from interest rates. He also drew attention to China's global excess stock dumping, urging government action through import price controls and anti-dumping duties.

As Finance Minister Nirmala Sitharaman prepares the upcoming Budget, the CII is optimistic about reforms by the NDA government, which it believes would benefit the economy. Suggestions also include tax cuts and excise duty reductions to aid consumption and tackle inflation.

(With inputs from agencies.)