New Delhi: Ahead of RBI's annual monetary policy, Indian corporates have called for cut in key policy rates by at least one percentage point to boost investment and revival of the economy, an Assocham survey said on Sunday.
Majority of corporates from 69 public and private companies surveyed said, "the RBI should cut repo rate, at which banks borrow money from the Reserve Bank, by 100 basis points (1 percentage point) to reduce the cost of borrowings," Assocham said.
RBI's annual monetary policy is scheduled for April 17. Over half of the respondents also called for cut in statutory liquidity ratio, the portion of deposits banks keep in government securities, and cash reserve ratio by 100 basis points and 50 basis points respectively.
The survey said the industry, particularly manufacturing, has been affected by slowdown in demand coupled with upward swing in input and capital costs. Industrial production slowed down to 4.1 percent in February 2012 from 6.7 percent in the same month last year, mainly due to high borrowing costs, it said.
In its last review on March 15, the Reserve Bank had kept key policy rate unchanged at 8.5 percent. It has also kept the CRR unchanged at 4.75 percent.