India stands out as fastest growing economy, but RBI should halt any more rate hike: Ajay Singh

NEW DELHI : With the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) set to review the benchmark policy rates, Assocham President Ajay Singh urged the central bank’s Monetary Policy Committee to stop further hike in lending rates in the wake of uncertainties in the global business environment.

Addressing his inaugural press conference after becoming President of Assocham, Singh dealt with some key issues facing Indian industry, including the overall economic outlook, inflationary pressures and some emerging opportunities for the young entrepreneurs and the country is benefiting from the economic expansion led by technology. with great employment potential.

He said that while India remains the fastest growing nation among major economies, growth is uneven even as global headwinds from fluctuating energy prices, geo-political developments and the threat of recession need to be watched in abundance. economic in major economies.

“There are suggestions in certain quarters of another 25 bps hike in the REPO rate by the RBI’s Monetary Policy Committee, we think the economy has reached a saturation point where it may be difficult to absorb any more rate hike. Rate sensitive sectors such as real estate, including residential complexes, passenger cars, and commercial vehicles, could be adversely affected by rate hikes,” said Singh.

Talking to him about the MSMEs, he also said that most of them are in the service sector, especially trade, street vendors, restaurant owners, small transport operators and postal contractors or medium-sized companies.

“Although the FinTech’s are reaching out quickly, they need to be supported in accessing their high tech platforms like AI for working capital as well as marketing support. Hence the MSMEs can access AI based platforms and leverage them to promote their businesses. This would also lead to further formation of the economy,” said Singh.

Ajay Singh said that as in the case of MSMEs, technologies like AI should be leveraged for food management, both production and supply. Technology platforms should connect farmers, FMCG companies, small distribution channels, state governments and the central Ministries of food and consumer affairs, earth science, agriculture and farmers’ welfare and rural development such as chemicals.

“By nature, agriculture is very vulnerable to climate; excessive or deficient rainfall, excess temperature or cold weather can affect production. We often run into the ‘problem of abundance’ or the ‘problem of scarcity’, helping anyone in the value chain. The technological interface should help solve some such problems,” he said.

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Updated: 04 April 2023, 07:15 PM IST

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