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'Centre to complement RBI's efforts to beat slowdown'
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New Delhi, Aug 22 (TIWN) The government is expected to take policy measures to complement Reserve Bank of India's rate cut for reversing the slowdown in economy, NITI Aayog Vice Chairman Rajiv Kumar told IANS.
"The RBI Governor has himself said that there are several indications of a slowdown in the economy. That is why the central bank has taken the step of further reducing the repo rate.
"So, I think that the RBI having acted, the government will also take steps because it has been recognised that there is slowdown,"he said.
In its monetary policy review earlier in August, the RBI lowered the GDP growth rate for 2019-20 to 6.9 per cent, as compared to earlier estimate of 7 per cent.
The central bank slashed repo rate for fourth time this year bringing it down to 5.4 per cent to spur growth by providing cheaper loans.
There is growing distress across various sectors and industry has demanded sops and relief package from the government to tide over the crisis.
Industry captains like Anand Mahindra, A.M. Naik of L&T, Adi Godrej and many others have flagged demand slowdown in the economy.
The country's automobile sector, one of the key employers in the manufacturing sector, reported its steepest fall in vehicles sales in almost two decades in July leading to massive job cuts across the value chain.
"Policy steps are being taken and would continue to be taken to reverse the slowdown. The RBI has already acted and the government is also expected to take some measures to reverse the trend as soon as possible," Niti Vice Chairman said.
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