In reply to demands for cutting interest rates, Chidambaram said that the matter is under consideration of the RBI.
Talking about the all-time weak rupee, the minister projected the right level of rupee to be between 59 to 60 per dollar. “But that is not something I am willing to pronounce on,” he added.
Supporting Padmanabhan Committee’s suggestion on the feasibility of putting exports under priority sector lending, Chidambaram said that, the measure might prove to be detrimental for other sectors. The priority sector lending allows the banks to lend 40 per cent of their loans to boost sectors like agriculture and small scale industries.
Ramu Deora, past president, FIEO considered the R.S. Gujral report for strengthening MSME exports. The report was made by the interministerial committee, which included the current RBI governor Raghuram Rajan. According to Deora, if the government implements the report, it will increase exports, manufacturing activities and employment.