Ficci wants RBI to revisit stance on interest rate

Briefing reporters, Ficci President Ranjan Bharti Mittal said India Inc was worried about future course of action by RBI. Stating that while business confidence was up, there was a sense of apprehension on future course RBI would adopt regarding monetary policy.
Observing that interest rates have a direct bearing on investments, Ficci said, it is feared that hardening of lending rates may force companies to shelve project rendered unviable due to hardening of lending rates.

Likewise, the chamber noted that EU situation could materially impact India and growth momentum if it deepens. “There are signs of demand from this region getting a little wobbly.”

According to Ficci, while RBI may have accounted for adverse impact of all these global developments, it should still be cautious in terms of its future action. “Hastening the pace of monetary tightening at a time when global economy is still on tenterhooks could adversely affect health of India industry,” it added.

Besides interest rates, companies are alreading facing the challenge of rising input costs that has led to significant erosion in margins, Ficci said. Wipro Chairman Azim Premji, however, felt the eurozone crisis would not have much of an impact on the Indian IT industry and expects it to “blow-over”.
DH News Service

Energy revolution on, says Wipro chief
Wipro Chairman Azim Premji, on Friday, said India is heading towards a “renewable energy revolution” akin to telecom sector.
Addressing the Ficci members on “Sustainability and Innovation” here, Premji, said India today has a “very low, inadequate, semi-inefficient” installed base on the power generation front — similar to telecom landline scenario prior to the cell phone revolution.
He said power capacity requirement in India is so huge that it would kick-start renewable energy industry which is enjoying “generous” Government incentives.