Key Points
India's Commerce Minister Piyush Goyal urged the Reserve Bank of India to cut interest rates to further boost economic growth, arguing that factoring food inflation in rate decisions is a "flawed theory.".
Using food inflation, which restricted the RBI from any rate action for two years in the rate setting is a "flawed theory", the Chartered Accountant-turned-politician said at an event hosted by CNBC TV18...
We are the fastest growing economy in the world, we can do even better," Goyal said.. Speaking at the same event later, RBI Governor Shaktikanta Das declined to comment on the senior minister's suggestion, saying that the six-member rate setting panel will take the appropriate call at its next meeting scheduled in December first week...
He added that for 5-6 years, there has been a synchronised action between the RBI and the government to bring down inflation and the last decade has seen lowest inflation under any Prime Minister in India's history...
Without naming South Korean auto major Hyundai, Goyal said a recently listed automaker has sent over USD 12 billion as royalties and dividends abroad on a USD 200 million investment made 25 years ago, and is still holding a USD 15-billion stake in the company, which is illustrative of the handsome opportunities that lie in India...
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