In the wake of disappointing industrial production figures for October, the slight dip in inflation during the month has come as a small relief. India Inc feels that this could help policy-makers take a decision to ease money flow in the economy.
R.V. Kanoria, President, FICCI, said: “This should encourage RBI to fine tune the monetary policy with the view to bolster growth particularly that of the manufacturing sector.”
However, he added that the key economic indicators, such as gross domestic product and industrial production continue to remain soft and highlight the sluggishness in the economy and it is important to push growth.
“The slowdown in the growth momentum has a clear bearing on employment generation. The Government has already initiated a series of reform measures. The Finance Ministry has also reiterated its resolve to rein in the fiscal deficit. Given these moves, we feel that RBI should also take steps that would support growth and lift business sentiment,” he said.