Speaking in a press conference, S Gopalakrishnan, president CII, "Rising interest rates are counter-productive and they discourage investments."
"RBI has done a very good job in containing volatility with its monetary controls. But for long term economic growth the interest rates are too high," he said.
Gopalakrishnan said the GDP growth during 2012-13 had hit a decadal low of five per cent.
"Growth in the next few years is likely to be muted. We need to go back to the eight to nine per cent GDP growth for which investments are necessary as there is a sense of urgency," the CII president said.
He added that the implementation of the Goods and Services Tax ( GST) itself will add 1.5 per cent to the GDP straightaway.
CII also advocated land and power sector reforms, and a big push to infrastructure development.
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