Industry should cut prices, instead of asking rate cuts: Gupta

Jaipur, Nov 20 (UNI) Corporate Affairs Minister Prem Chand Gupta today called upon India Inc to cut prices of their goods to create demand, instead of pitching for rate cuts.

''The industry should consider price cuts to revive the economy through boosting the consumer demand and not just sit back and ask for rate cuts,'' Mr Gupta said while responding to Indian Inc demand for cheaper credit.

He was speaking to reporters on the sidelines of a five-day 'International Conference on Accountancy Profession--Shining Bridge Between Global Economies' organised by the Institute of Chartered Accountants of India (ICAI).

Similar voice was echoed by Finance Minister P Chidambaram during the interaction with the industry captains at the concluding day of the India Economic Summit on November 18.

In response to this call, the industry ruled out the proposition of any kind of price cut in the near future, and instead asked the government to make credit available at a cheaper rate.

Mr Gupta said the reducing the prices will cut the profit margin of the companies, on the other hand it will increase the sales volumes, besides stimulating the economy.

On the impact of global financial turmoil, he explained that the it had started as result of enthusiastic lending by the banks.

However, ''Our country is insulated from the crisis due to its tight regulatory system and government's timely intervention,'' he said.

Mr Gupta also expressed hope that the Company Bill, 2008 will be passed in the next Parliament session in December.

UNI SG MP AS1427