India Inc on Tuesday demanded a strong dose of monetary easing to help revival of investment in the economy.
At a review meeting chaired by the Prime Minister Narendra Modi to analyse the impact of current global volatility on the Indian economy, Corporate India highlighted that there was room for monetary easing to the tune of 75-100 basis points over the next seven months.
Besides making a case for policy rate cut, representatives of Corporate India also discussed the impact of Yuan devaluation on Indian business, Assocham President Rana Kapoor told reporters after the meeting.
Assocham has pointed out that between January-July 2015, WPI and CPI inflation fell 793 bps and 298 bps, respectively over January-July 2014. However, the magnitude of monetary easing so far has moved by just 75 bps.
Federation of Indian Chamber of Commerce and Industry President Jyotsna Suri said that she had suggested that access to capital be made easier and also that the cost of capital should be brought down to improve investments in the economy.