'RBI should consider revisiting lending rates for industry'
The Commerce and Industry Ministry on Thursday said the RBI should consider revisiting the differential lending rates for the industry to boost manufacturing activity and revive economic growth.
New Delhi: The Commerce and Industry Ministry on Thursday said the RBI should consider revisiting the differential lending rates for the industry to boost manufacturing activity and revive economic growth.
"There is a differential rate of credit which is there for the investors, SMEs... We will urge the RBI to revisit this issue to ensure that capital is available to the industry to make investments and also the rates are effective," Commerce and Industry Minister Anand Sharma told reporters here.
Stating this has been the ministry's consistent and considered view, he said, given the slowdown, all steps should be taken to ensure the Indian industry remains competitive and the manufacturing sector grows.
The minister's views come in the backdrop of Industrial production growth rate slowing to 2.4 percent in May, 2012, due to contraction in capital goods and mining output, coupled with poor show by manufacturing sector.
Reacting on the data, Sharma said: "Overall, there is an improvement in May. We hope that those sectors, particularly mining and electricity, which are lagging behind will also improve".
In April, IIP growth rate was revised downwards to (-) 0.9 percent, from 0.1 percent reported earlier.