Time for Modi's version of New Deal?
The RBI expectedly cut the repo rate last week by 25 basis points, bringing the key lending rate to a six-year low of 6 percent. This came in the backdrop of a steep fall in inflation and weak consumer demand across the country. However, even though the industry had long demanded the cut, it is unlikely to do much to revive investment activity across the country as the root cause for the problem does not lie in high interest rates.
