Engineering exporters body EEPC India has expressed disappointment at the Monetary Policy Committee of the Reserve Bank of India (RBI) not reducing interest rates.
“The RBI is absolutely correct in reading broad-based cost push pressure in industrial raw material. But, the latest monetary policy review has not supported the manufacturing, exporters in particular, to remain competitive in the international market,” EEPC Chairman Mahesh Desai said.
While the Budget has provided credible measures to rein in steel prices, the interest rates still remain high in the country as compared to those in the competing economies, he said in a statement.
A special concession on CRR front for lending to MSMEs is a welcome measure, but banks must fully transmit the lower cost of finance to the borrowers, Mr. Desai said. While the global economy is showing signs of a rebound, as evident from the April-January export figures, the COvID-related restrictions in several key markets remain a challenge, he said.