A HIGHER INTEREST RATE AND GROWTH ARE CONTRADICTORY POSTURES: HOLDING ON TO ONE OF THE HIGHEST INTEREST RATE OF THE WORLD, RBI'S PUSHING OF THEORY OF HIGH GROWTH IS CONTRADICTORY

A HIGHER INTEREST RATE AND GROWTH ARE CONTRADICTORY POSTURES: HOLDING ON TO ONE OF THE HIGHEST INTEREST RATE OF THE WORLD, RBI'S PUSHING OF THEORY OF HIGH GROWTH IS CONTRADICTORY


Dear All,
It is known worldwide and for ages as a Principle Non-refutable that, a "Higher Interest Rate and Growth are Contradictory Postures".
I am giving the link of a News Article below if some of you would like to read it:

RBI's rosy growth forecast baffles economists


While holding onto one of the Highest Interest Rate among the Economies of the world, RBI's pushing of the theory of High Growth of Indian Economy, is just trying to futilely justify its own dogmatic stand of holding to the Highest Repo Rate of 6.5% now almost for 20-months at a stretch and giving lot of pains to the common people of India, in their livelihood borrowings from scheduled lenders(banks) in the market.

The EMIs of the Livelihood Borrowings of the Common People of India have been enhanced almost by 25% due to such highest Repo Rate of 6.5% being held with a sticking stand, is not being understood by the heads those are supposed to understand it in RBI.

The Sticky Highest Interest Rate ( Repo rate of 6.5% ) without being cut, while the other large economies of the world have moved on with Rate Cuts, is causing more wound in the economy of India, than it could heal, and the bigger wound it is creating will take more time to heal in future.

I, as an Ordinary Citizen but a Professional of India understanding the subject flawlessly and without ambiguity, am not in favour of this Highest Interest Rate of 6.5% Repo Rate being held very stickily and by dogmatic attitude almost for 20 months now. Having climbed to 6.5% from 4% in a span of year repeatedly, it does not mean that to seat there stickily for 20months taking shelter under inflation-phobia ... not done... by a pragmatic view, where more than 80 Crore ( 800 Million ) Indian Population ( almost 60%) need these livelihood borrowings for their survival and sustenance. What is that RBI is working for then; if these 80 Crores Commoners in India, have to suffer with enhancement of EMI by more than 25%?

The Government of India most honourably and benevolently is giving free ration quotas to these 80 Crores of Commoners of India, is it not being visible to RBI? Why such a huge population of commoners are being supported with Free Ration Quota then? Because they need support. At the same time they can not be penalized with 25% enhancement of EMIs of livelihood borrowings?

 I think the RBI Governor needs to explain more for it, than his repeated argument in favor of his stand of Highest Interest Rate and Inflation Phobia. I am not supporting the RBI Governor's stand on Interest Rate for this reason.

Best regards,
Dr. Nimain Charan Biswal,
Mumbai, India.


About the Author: Dr. Nimain Charan Biswal is a B.Sc.(Agri. Science and Technology), M.B.A. and Ph.D.(Management Area ) by qualifications; and he has 38+ years of work experience in both industrial and development sectors in diversified fields of social importance. He has been educated at Orissa University of Agriculture and Technology (OUAT)-Bhubaneswar, Institute of Rural Management Anand (IRMA) and Gujarat University (with Resource Support of IIM-Ahmedabad). He is further educated at IIM-Calcutta, XLRI-Jamshedpur, Apple Computer Industries and Spar Inc., USA. He has worked for reputed National and International Organizations in Senior/Top Management Capacities at Board level as well as Managing Director and CEO. He is a management expert covering extensive areas from management in industrial sectors, management in agriculture and dairy, development management to management of public systems. He is a prominent professional of India and known Internationally as well. He lives at Mumbai in India.






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