FICCI said that upcoming Monetary policy must encourage risk taking and help release animal spirits.
FICCI has pitched for a benign stance in the monetary policy to be announced this week for strengthening of the revival signs in the economy. The RBI Monetary Policy Committee (MPC) is meeting on April 4-5, for announcing the First Bi-monthly Monetary Policy Statement for 2018-19.
“Over the last few months, the signs of economic recovery are visible, but there is a need to further push the growth levers to see a complete turnaround in manufacturing and enable investments to reach full scale,” said Rashesh Shah, President, FICCI.
Shah pointed out that FICCI’s surveys show investment growth has not picked up at the desired pace and one of the reasons cited is lack of availability of affordable capital for higher investments.
“We urge the RBI to take a balanced approach in the upcoming meeting of the Monetary Policy Committee and take necessary action to encourage risk taking by business enterprises and release animal spirits. This is critical to boost investments and accelerate the growth of the economy,” he said.