The newly elected President of Confederation of Indian Industry (CII) Kris Gopalakrishnan said the RBI must work in tandem with the government to boost economic growth.
He said the Reserve Bank of India (RBI) must reduce interest rates by at least 100 bps in 2013-14. Steps like early implementation of GST (Goods and Services Tax) would help in adding 1-1.5 per cent in the GDP, he said.
He opined that reduction in interest rates would help in enhancing investments and increase in boosting capacity. According to him, supply side constraints is the main reason for inflation.
On the taxation front, the CII chief expressed confidence that the amended constitutional amendment bill on GST would be placed in Parliament in the monsoon session.
He emphasised the need for the Cabinet Committee on Investment (CCI) to aim for making a repository of the top 50 stalled projects in terms of the investment incurred and go for their revival on a priority basis.
He called for setting up of independent regulatory authorities in sectors of scarce resources like coal, real estate and health.
Gopalakrishnan is also the Executive co-chairman of Infosys.
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