Industry expects Shaktikanta Das to address liquidity issue urgently: CII

Industry body CII Tuesday said the appointment of former bureaucrat Shaktikanta Das as the new RBI Governor comes as a huge sentiment booster to the industry and expressed confidence that he will take urgent steps to address the liquidity squeeze in economy.

Das Tuesday was appointed as the new governor of the Reserve Bank of India, a day after his predecessor Urjit Patel's resignation.

"The announcement enables a smooth transition process and ensures that stability will be maintained. The Government, in selecting an experienced economic expert, has avoided disruption and imparted huge confidence to investors and industry," CII President Rakesh Bharti Mittal said.

He said the Industry was confident that the liquidity squeeze in the banking and non-banking financial sector, which is spilling over to the various segments of industry would be taken up with all urgency by Das and there would be seamless flow of credit to industry and trade, especially to the MSMEs.

"The wide-ranging experience in handling the economic matters will certainly help Das in dealing with the critical issues facing the economy. We need to bring down the real interest rates, improve liquidity and promote growth and employment. Improving credit flow to the real economy, especially in sectors like MSME and housing is critical at this juncture," Ficci President Rashesh Shah said.

Das, who retired as Economic Affairs Secretary in May 2017, has been appointed for a term of three years.