INSUBCONTINENT EXCLUSIVE:
Principal Economic Advisor with the Finance Ministry, Sanjeev Sanyal said that as the primary deficit is low and the debt-GDP ratio was less
than five per cent there is scope for raising low cost debt from overseas markets."The sovereign benchmark will be useful for raising
borrowings abroad and it will be announced later in the year by the government", Mr Sanyal told reporters on the sidelines of annual general
meeting of the Indian Chamber of Commerce here.He said low cost borrowings from overseas market would largely reduce the crowding out effect
in the domestic debt market and help maintain fiscal prudence.According to Mr Sanyal, the government has been able to anchor the inflation
level between three to four per cent and the target of real GDP growth of eight per cent is a "stiff and difficult target".There is need to
reduce the spread between lending and deposit rates, which is very high in India, he said
"There is no evidence that the interest rates are having any impact on the savings rates
This (reduction of interest rates) will help in lowering the cost of capital without affecting savings," Mr Sanyal said.He said there is a
serious problem in transmission of the interest rate cuts to consumers of the commercial banks byway of cheaper loans."The RBI needs to
handle it", he said adding the enforcement of contracts is an important element for attracting foreign capital
"India's ranking in terms of enforcement of contract sis very low as 163
For this, there is a need to achieve efficiency of gains at lower, high and the Supreme court levels, he stated.He said that the government
is in the process of creating an inventory of land across the country
"The inventory will be used for monetisation and reduce the need for acquiring land for any project", he said
Regarding transfer of RBI's profits to government, Mr Sanyal said that this is "nothing new" and every central bank does it.Get Breaking
news, live coverage, and Latest News from India and around the world on TheIndianSubcontinent.com
Catch all the Live TV action on TheIndianSubcontinent 24x7 and TheIndianSubcontinent India
Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.
