Relax fiscal deficit, cut interest rates to revive growth, says CII

There should be interventions for depreciation of the rupee-dollar exchange rate to boost, says CII

The Narendra Modi government might need to relax the fiscal deficit target for the year, and the Reserve Bank of India should cut interest rates by 100 basis points to revive economic growth, the Confederation of Indian Industry (CII) said on Friday.
 
The CII also said there should be interventions for depreciation of the rupee-dollar exchange rate to boost exports and a greater push towards bank recapitalisation to shore up credit growth.
 
“There may be a need to relax the fiscal deficit targets to accommodate stimulus measures, particularly for job-creating sectors. The Fiscal Responsibility and Budget Management (FRMB)