New Delhi, Oct 13 (IANS) The government must reduce repo and reverse repo rates by 50 basis points to enable industry avail of loans at reasonable rates, says Swati Piramal, the newly-elected president of the Associated Chambers of Commerce and Industry in India (Assocham).
“Interest rates across the whole economy should be stabilized between 4 percent to 6 percent with user-end interest rate on agriculture and allied investments at 4 percent,” Piramal said while addressing her first press conference here Tuesday after taking charge.

“Housing loans should be not more than 6 percent for all houses, costing below Rs.30 lakh,” she added.

Repo is the rate at which Reserve Bank of India lends to banks, while and reverse repo rate is that at which banks park excess funds with the central bank.

Piramal also called for quick disinvestment of profit-making public sector undertakings (PSUs), maintaining this would help soften interest rates and assist fiscal management. “Disinvestment in PSUs can raise Rs.30,000 crore.”

She stressed the “need for an equitable, effective, efficient tax code”, and said India should not follow asset-based taxation and hurt growth, especially of capital-intensive and infrastructure industries with long gestation period.

Piramal, the first woman to chair an Indian business chamber, has also appointed 100 businesswomen to head Assocham’s various committees.

–Indo-Asian News service

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