The industry at a pre-monetary policy meeting held by the Reserve Bank of India (RBI) on Monday has suggested the apex bank to move to a more accommodative monetary policy.
The Confederation of Indian Industry (CII) has urged the RBI to send out a signal in the forthcoming policy announcement that there would be no further tightening.
It has also suggested that a separate window be opened by the RBI for Small and Medium Enterprises (SME) financing to ensure availability of credit at affordable rates.
It has also suggested that exports be provided priority sector lending status, and the RBI must support the infrastructure sector through easing of norms. For this, CII has suggested that the RBI consider forbearance for financing already made available to the infrastructure sector.
Associated Chambers of Commerce and Industry of India (Assocham) has recommended softening of interest rates and liquidity, reviving infrastructure growth and providing impetus for investments.
For widening of financial markets, the chamber has urged the RBI to develop municipal bond market for funding urban infrastructure. Some of the other recommendations include liberalising financial markets through augmentation of capital flows, facilitating availability of export credit, and taking steps towards structural reduction in gold imports.