Rupee fall: RBI should have stepped in sooner, says Adi Godrej

The country's gross domestic product (GDP) growth rate would easily go up to 9 per cent from the 7.5 per cent target at present, if the government implements the economic reforms package, said Confederation of Indian Industry (CII) President designate Adi Godrej on Sunday.

The Reserve Bank of India (RBI) should have intervened much earlier to halt the depreciation of the rupee, he told journalists on the sidelines of a function at Indian School of Business in Hyderabad.

"We could easily bring the GDP growth rate from 7.5 per cent to nine per cent by enacting the Goods and Services Tax (GST). The day we enact this, rates will rise by 1.5 to 2 per cent," he said.

Likewise, there are many other reforms that could have been implemented, he added.

Replying to a query, he said the ongoing anti-corruption movement, slowdown in government and Parliaments' decision-making have definitely affected business.

"I hope, our politicians will sit together and the government works out with the Opposition and implement these reforms. The new manufacturing policy should have been notified and FDIs not just in modern retail only, other sectors also, telecom can be also expanded," Godrej said.

He said the rupee started appreciating soon after the RBI announced the policy. "I think, we should have defended the rupee much better, both in terms of statements made and also by action," he added.

Meanwhile, the government has convened a meeting with the heads of top business chambers Federation of Indian Chambers of Commerce and Industry (Ficci), CII and Assocham on Monday amid a deceleration in industrial production and the general perception of uncertainty in policy decisions.

Commerce and industry minister Anand Sharma will hold consultations with industry leaders, including Ficci president Harsh Mariwala, Assocham president Dilip Modi and Adi Godrej.

Other corporate bigwigs who will be present at the meeting include HSBC country head Naina Lal Kidwai, Bharati Enterprises managing director and vice chairman Rajan Bharati Mittal, JK Paper managing director Harsh Pati Singhania, R. N. Dhoot of Videocon and Adi Godrej.

This will be Sharma's first meeting with India Inc after the government was forced to put on hold its decision to allow 51 per cent foreign direct investment (FDI) in retail.

Courtesy: Mail Today