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Scope for more aggressive RBI rate cuts: Ravi Sehgal, EEPC

Exports have a major role to play in pushing the GDP growth and they must be given due support.

, ET Bureau|
Last Updated: Oct 04, 2019, 02.45 PM IST|Original: Oct 04, 2019, 02.45 PM IST
Reserve Bank of India's decision to further cut policy interest rates by 25 basis is welcome, though there was a scope for an aggressive reduction in the cost of borrowing, especially for the exporters, said EEPC India chairman, Ravi Sehgal.

Sehgal said, the World Trade Organisation has downward revised the prospects for global trade in 2019, citing several issues like US-China trade war and more economies turning protectionist. Under these circumstances, Indian exports have to double down on competitive strength by lowering cost at home. With Indian exports, bearing one of the highest cost of credit in the world, the RBI should have ensured still lower interest rates.

Besides, the exporters would urge the government to continue to remain engaged with the banks to pass on the full benefits of 135 basis points cumulative rate reduction since February this year, Sehgal said.

The EEPC India said, the RBI has downward revised the GDP growth prospects to 6.1 per cent in the current financial year, from its earlier estimates of 6.9 per cent. Exports have a major role to play in pushing the GDP growth and they must be given due support.

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