Srinivasan said that the signal is very clear from the RBI as the Central Bank has given equal priority to strengthening the recovery process and inflation control.
The CII in a statement said, "While the 75 bps hike in CRR in two phases is higher than the market expectations of 50bps increase."
CII hopes that this would not have any short term impact on lending rates since the system still has adequate liquidity.
Welcoming the increased projection of GDP growth for the year, CII has said that this is in line with its own assessment of industrial performance.
CII also pointed out that the government would have to come out with its strategy for reviving the agricultural sector, which is passing through a phase of sub optimal growth.