AIAI’s views on Rate Cut will Boost Manufacturing Sector

The announcement by the Reserve Bank of India’s Governor Mr. Raghuram Rajan to reduce repo rate under the liquidity adjustment facility (LAF) by 25 basis points  comes as a reprieve to the manufacturing, infrastructure and MSME sectors stated Mr. Vijay Kalantri, President, All India Association of Industries(AIAI)

The AIAI welcomes the much awaited initiative by the RBI which will go a long way in reviving and setting the economy on a growth trajectory.  Moreover the interest rate cut will be instrumental in easing supply  logjams and will  bring down the cost of consumer goods, petroleum products and raw materials,  initiating the process towards deflation in addition to providing  a boost to the infrastructure and manufacturing sectors.