Kaushik Basu suggests slightly lower rate of interest to fuel growth in India

Former chief economic advisor Kaushik Basu on Monday said the Reserve Bank of India (RBI) could "slightly" reduce the interest rate to boost growth. "NPAs have made the banks cautious. But, India can do with the slightly lower rate of interest," Basu said at an interactive session organised by the Indian Chamber of Commerce here. The central bank should be left alone with complete autonomy, he added.

The RBI's monetary policy review is slated in February. Basu also said that the investment rate in India was on the decline. Talking about the GST, he said it was borrowed from advanced countries and "poorly implemented", and demonetisation was a "bad idea".