"The government has stuck to fiscal deficit commitments and inflation has been under control. Therefore, I do hope that this movement will continue in order to make our economy more competitive with more competitive interest rates," he said while addressing the CII Annual session.

Reserve Bank will hold its first bi-monthly monetary policy review for 2016-17 tomorrow.

The Finance Minister also stressed that the debate on crucial economic issues, like interest rates, should move in the right direction in India, which is a "large and noisy democracy".

This will "enable Indian society as the world's largest democracy and an aspirational democracy to add maturity to that debate", he said.

As regards retired persons who depend on interest income, he said their issues could be addressed by pension funds, which offer best returns. Jaitley said national pension scheme is providing attractive returns, adding "people will have to look at these products".

In the long run, deposit and lending rates should come down in order to make the economy more competitive, he said, adding the direction of the debate has to be mature.

The government has stuck to fiscal deficit consolidation path, pegging the deficit for the current financial year at 3.5 percent of GDP. In 2015-16, the fiscal deficit will remain below the budgeted targeted of 3.9 percent.

As far as inflation is concerned, while WPI has been in negative zone for past 16 months, CPI is hovering in the range of 5-6 percent.

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