Anant Goenka, President of Federation of Indian Chambers of Commerce and Industry (FICCI), said industry is clearly rooting for lower interest rates to support investment and demand.
“A 0.25% cut is very welcome, and that’s what industry is hoping for,” Goenka said, reflecting broad corporate sentiment ahead of the RBI’s policy decision.
On the sharp fall and volatility in the rupee, Goenka said that while large swings do create some concern, a weaker currency is overall positive for exports and domestic competitiveness.
With the RBI and the government allowing market forces to determine the rupee’s level, he said exporters stand to benefit as Chinese imports become more expensive.
“Overall, I would say there is no major impact to the industry, and it is a positive from an export point of view,” Goenka said, while adding that the RBI’s approach to intervention is being accepted by the industry.
On geopolitical and trade developments, Goenka said the industry is keen on deepening economic ties with Russia during the Russian President, Putin’s, visit to India, especially in defence, engineering, pharmaceuticals and IT.
While the relationship is long-standing and strategic, he acknowledged that sanctions continue to remain a risk that companies have to manage while exploring opportunities in the Russian market.
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On the US front, Goenka said industry remains hopeful that a bilateral trade deal on tariffs will go through, even though negotiations have taken longer than expected. He said discussions are progressing and that a deal, if signed, would be beneficial for several export-oriented sectors and also help sentiment around the rupee.
Sharing industry’s key expectations from the upcoming Union Budget, Goenka said the top priority remains a strong push to Atmanirbhar Bharat in defence, including a sharp rise in capital expenditure and higher allocations for the Defence Research and Development Organisation (DRDO).
The second major demand is a higher outlay for export promotion, especially under Remission of Duties and Taxes on Exported Products (RoDTEP), to support Indian exporters.
The third focus area is the critical minerals programme, including new initiatives to extract minerals from mining tailings using advanced technology.
He also said the industry is pushing for the creation of India’s largest integrated IT and electronics manufacturing park to strengthen the country’s electronics manufacturing ecosystem and boost value addition.
For the entire interview, watch the accompanying video
