At the recent Business Today ‘Power Breakfast’ held on May 6, 2014 at The Oberoi Delhi, many industrialists were of the view that inflation in India is more of a political problem than an economic problem. According to sources, they believed there were many ways by which inflation can be curbed.

Josey Puliyenthuruthel, Managing Editor, Business Today, moderated the freewheeling panel discussion which was hosted by Jay Rathore, Vice President and General Manager, The Oberoi, New Delhi.

The majority participants agreed that the periodic increases in interest rates by the Reserve Bank of India (RBI) had hampered industrial activity and could further worsen the situation in the future resulting in slowing down sectors such as infrastructure, mining and power. Ratul Puri, Chairman, Hindustan Powerprojects affirmative with the thought, said that we need to go out and aggressively reduce interest rates to kick-start the economy. He added that we need to raise the power tariffs. People are willing to pay for power. Ravi Uppal, CEO of Jindal Steel & Power, agreed and said that power distribution is the nerve that is paining the most.

Puri showed concern saying CPI problem can’t be solved by maintaining high interest rates.

From those who attended, felt Power and Railways deserved more importance and hence better reforms. Some panelists talked about job creation as well. Towards the end of the discussion, some panelists shared their wish list for the new government.

Source: Business Today