Quote on Credit Policy from Mr. Parthasarathy, Chief Financial Officer, Group CIO, EVP – Group M&A & Member of the Group Executive Board, Mahindra & Mahindra Ltd.

While the policy was on expected lines and the RBI's consistent stand on policy rates is understandable, a rate cut would have been favourable. India would not have been an outlier either, as China and South Korea have led the way recently with rate cuts to stem their falling growth. We, as a country, are shooting for higher growth rates and since policy rate actions work with a lag, the RBI could have helped spur higher growth expectations, especially given the other data points on inflation, slow growth and investment. The auto industry is still looking for strong revival of demand and lower interest rates would have helped the cause. The policy promises a cut in the new year, depending on some economic variables, and we hope that this will be sooner than later, giving a much needed thrust to the “Make in India” initiative.