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Update at 1900 hrs (IST)
Industry
Chambers push for interest rates review
NEW DELHI: The RBI's tight monetary policy has put pressure on the manufacturing sector, which witnessed a slowdown in growth in 2007-08 despite overall economy expanding at 9 per cent, leading industry chambers have said.
"The impact of hardening interest rate has been severe on industrial production especially on the consumer durable sector,'' Confederation of Indian Industry (CII) said on Friday.
FICCI expressed concern at the "significant downward revision'' of growth in the manufacturing sector. The chamber suggested a review of interest rates to encourage the growth of the sector. The central has tightened money supply by raising mandatory de
posit requirement for banks to control inflation. This has been hitting the sector hard through rise in interest rates. Manufacturing growth declined to 8.8 per cent last fiscal against 12 per cent in 2006-07, according to official data released on Frid
ay. The rate was put at 9.4 per cent in advance estimates of the Central Statistical Organisation. - PTI
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