THIRUVANANTHAPURAM, Sept 13: Kerala Finance Minister K M Mani wrote a letter to RBI Governor Raghuram Rajan seeking urgent solution for economic crisis the country was facing.
“At this juncture, I would like to draw your attention inter alia, to a few pressing issues that the country cry for urgent solution.
‘Among them, the most imperative is the tight money policy RBI has been following, especially from April 2011. There is no denying that inflation has to be reined,’ he said in the letter, which was circulated to the media here yesterday.
‘But often the diagnosis of the issue appears to be incorrect. Price escalation our country facing has been mainly due to supply side factors and heightening cost of production.
‘Therefore, the remedy seems to be encouragement of productive sectors especially micro, small and medium industries and our export sector on the one side and attempt to keep the cost of production within limits on the other side,” he added. (UNI)
Follow our WhatsApp channel