Govt Not Putting Pressure On RBI To Cut Rates, Says Arun Jaitley

Union Finance Minister Arun Jaitley has denied putting pressure on the Reserve Bank of India (RBI) to cut interest rates. On Monday, he had said that "costly capital" was affecting the manufacturing sector. He clarified that he was referring to the challenges faced by the manufacturing sector.

"The fact is that there was not a single sentence reference (not even a word) in my entire speech to either the Reserve Bank or its Governor," Jaitley said in a Facebook post. "One of the many points that I made was that the cost of capital has to be cut down. Any one speaking on the subject of 'Make in India' would necessarily suggest this," he added.

Talking about RBI Governor Raghuram Rajan's statement that the 'Make in India' campaign should focus more on domestic demand as compared to the export market, Jaitley had said, "Whether 'Make in India' is made for consumers within India or consumers outside, is not so relevant. The principle today is that consumers across the world like to buy products that are cheaper and of good quality."