Unsatiated by the policy steps announced by the Reserve Bank of India today, India Inc said the package on rate cuts and steps for boosting housing and small and medium industries was not enough and pegged its hopes on the government for more stimulants.
While welcoming the cut in short-term lending and borrowing rates between the RBI and banks as also additional liquidity of Rs 11,000 crore for the housing and SME sectors, apex trade and industry chambers said sectors like automobiles and white goods needed more support.
"The central bank could have gone a step further by cutting the CRR and SLR rates to send a stronger signal of liquidity support to corporates," Ficci Secretary General Amit Mitra said though he described the package as a "good start in the right direction".
"We now expect some fiscal stimulus from the government, which would help complete the package," CII Director General Chandrajit Banerjee said.
The government has deferred by a day its Rs 17,000 crore stimulus package for auto, housing and exports sectors and is likely to make an announcement tomorrow.
"The cut in rates is not enough as the economic situation calls for drastic fiscal measures," Assocham President Sajjan Jindal said.
Disappointed that there were no major relief for the automobile and white goods sectors, Mitra said the cut in short-term lending rate (repo) to 6.5 per cent and borrowing (reverse repo) rate to 5 per cent with effect from December 8 was not enough.
Assocham said cuts in the repo and reverse repo rates will give relief to the interest sensitive sectors like automobiles, real estate and infrastructure but said it was not enough.
