Stash may power GDP

Ficci wanted loot retrieved; Assocham seeks rate cut

Panaji, July 1: The Federation of Indian Chambers of Commerce and Industry (FICCI) has observed that retrieving black money from abroad could be one of the solutions to bring economy back on track.

“FICCI has given a 12point agenda to the (former) finance minister to revive economy, which has this issue of repatriation of the money,” FICCI president R.V. Kanoria said.

Mr Kanoria said the issue of repatriation of black money from abroad without asking the countries to disclose the identity of the depositor could bolster economy which is in doldrums.

“From 1991, country’s economy has been growing. I fail to understand why our situation is back to the years before 1991,” he said. Appealing to the Centre to work towards lifting up the overall negative sentiment, he said, “While on one side there is poor performance of the union government, there is rise of independent states that are outperforming other states”.

Meanwhile, another industry body Assocham in its survey said that the Reserve Bank of India (RBI) should immediately cut policy rates by 1- 1.5 per cent as high interest rates are impacting the business of small and medium units.

The survey said rising raw-material cost and high interest rates have put pressure on profits margins. The chamber had surveyed 100 SMEs.

In mid-quarterly review of the monetary policy, RBI has kept policy rates unchanged. “This has put burden on the small capital organisations which are dependent upon the banks for their finances,” Assocham secretary general D. S. Rawat said. — PTI