Market borrowing rate must come down: Assocham president B K Goenka

Goenka said while the RBI has reduced the repo rate, banks have not cut their lending rates. They are not reducing it because of the input cost-output cost difference

Associated Chambers of Commerce and Industry of India (Assocham) President BAL KRISHNA GOENKA tells Subhayan Chakraborty that a stress fund should be created to leverage stalled projects in the housing 

sector. Edited excerpts:

What should be the main way to deal with the current slowdown in demand?

First, the government has to start borrowing from the market at a lower interest rate. While the Reserve Bank of India (RBI) has reduced the repo rate, banks have not cut their lending rates. They are not reducing it because of the input cost-output cost difference. 

The input cost is fixed deposits. If the government