CII President R Dinesh has called for a continuation of the pause on rate hikes by the RBI and a change in stance from hawkish to neutral, indicating that with the right signals from the industry, it was quite important for growth of the economy.

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In an interview with CNBC-TV18’s Shereen Bhan, Dinesh described India as an island of growth in the global economy, with more than 15 percent of the global growth expected from the country.

While emphasising the importance of keeping inflation in check, he mentioned that the market is showing positive signals. Dinesh stated that the situation needs to be observed until October to determine if there will be a pause and a change in stance.

On the industrial front, he said all sectors were showing utilisation over 75 percent, with machinery reaching 80 percent, and this was a significant indicator as machinery is supplied to all sectors.

He affirmed that the private sector remains committed to future growth through continued capital expenditure, and this was 79 percent more than the previous year.

The industry has been looking to boost services exports but has noticed green shoots in the manufacturing sector. There was also growth in foreign investment aimed towards increasing exports, he said.

In this regard, the CII is optimistic about the government's efforts to expedite negotiations for free trade agreements.

Also read: India is likely to grow around 7.8% in the next decade: CII President

Dinesh said that CII continues to collaborate with states to foster economic growth. While some areas are experiencing progress, others face challenges. CII is providing support to states to attract the right sectors and enhance their presentation. Additionally, a national land bank is being developed to attract more manufacturing investments.

In the MSME sector, the CII is actively engaged in augmenting skill capacity and preparing to play a role for future needs.

(Edited by : Pradeep John)

First Published:Jun 5, 2023 7:34 PM IST