Industrialists seek more liquidity in market to fight recession

New Delhi, Nov.17 : Though India claims to have a strong fundamental value proposition, industrialists are seeking more liquidity in the market.

Top entrepreneurs participating in the three-day 24th India Economic Summit here, are trying to find solutions to overcome the crisis.

Speaking exclusively to ANI, Adi Godrej, CMD of Godrej Group said "Clearly the global crisis is affecting India perhaps more little the most people thought but I think we have the means to fight it strongly and I think the government should take quick action."

"It (government) has taken some action but I think liquidity must be improved. CRR, SLR rates must be cut further. Interest rates must be cut because inflation which was the big problem few months ago, now almost disappear. Inflation will come down a lot, and it will further come down a lot in 6-months time. So we must create monetary stimulai in the economy. Interest rates should be cut," he added.

Be it the manufacturers, exporters or service providers - all are worried about liquidity crunch. Predictions are that in the coming financial quarter there might be decline in profits.

Larsen and Toubro MD and CEO Anil M. Naik said "Liquidity, like anyone else liquidity is the main problem for everybody. Maybe much less for Larsen and Turbo because of its triple A rating and its reputations and promoters' reputation but the fact is that little impact is everywhere and the interest rates are high that has to come down. Now there is more and more liquidity put in the market for the interest rates which skyrocketed to 12 per cent."

However, Gujarat Chief minister Narendra Modi, who attended the Summit to explore Gujarat's potential in the economic front strongly vouched for a greater role for developing and underdeveloped countries.

He laid stress on infrastructure development to combat recession.

Speaking to ANI, Rahul Bajaj, Chairman Bajaj Auto and Member of Parliament, said the 30 per cent growth in quarter two will go down because of recession'.

He said the domestic market is badly hit and it will further go worse. By Ravi Khandelwal

ANI