Industry body Ficci today asked for more fiscal measures from the government to tackle the current economic downturn, demanding more rate cuts from the Reserve Bank of India to ease liquidity crisis and reduce cost of borrowing.
In a meeting with top government functionaries, Ficci delegates asked for a host of fiscal reliefs, including cutting CRR to 4.5 per cent, repo rate to 5 per cent, reverse repo rate to 4 per cent and SLR to 22 per cent, besides reducing bank rates by 100 basis point.
Besides, the chamber also said that with the inflation level now coming down consistently, the focus needs to shift dramatically to the slowdown in the growth and the monetary policy should be more flexible to provide adequate growth stimulus.
"The current situation is rather very grim. We mentioned that more measures need to be taken, measures on much bigger quantum," Ficci Senior Vice President Harsh Pati Singhania told reporters after the meeting.
Asked whether the government gave any assurances about implementing their suggestions, Singhania said it was keen to understand the problems and listened the views of the industry.
The Ficci delegation raised issues concerning different sectors -- textiles, cement, tyres, auto components, steel, paper, clinical research, gems and jewellery, real estate, chemicals and agro chemicals.
On the textile sector, the chamber asked for deferment of 8th quarterly instalments of principal amounts on loans taken by the industry, besides asking for restoration of drawback rates that prevailed before reduction in September 2008.
"Apart from all issues, the government has increased the minimum support price (MSP) on cotton by about 40 per cent," Ginni Filaments Managing Director Shishir Jaipuria said.
The prices of domestic cotton is 15 per cent higher than the international prices, he said, adding that the government should allow procurement of cotton through open market.
