High interest rates imposed by the RBI have destroyed Indian industry

There seems to be no end to bad news on the economic front. Industrial production fell by 1.6 percent in May. Exports fell by a much larger 4.36 percent in June. With the start of business on 15 July, another rush developed on the dollar, forcing the Reserve Bank of India (RBI) to raise interest rates to stem the outflow, even though it knew that this would push up the cost of borrowing for domestic investors by another unbearable 0.5 percent.

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