Rate cut can aid govt-led growth: MPC's Kumar

Kumar, one of the six members of MPC, noted that slower growth largely reflected the industrial sector's weakness

- Gopika Gopakumar

India's economic growth is expected to pick up in the coming two quarters with an increase in government spending even as private investment lags, according to Monetary Policy Committee (MPC) member Nagesh Kumar.

Kumar was one of the two external members of the Reserve Bank of India's MPC who voted for a 25-basis-point rate cut to help revive growth, which, according to him, has seen a serious decline and warrants policy attention.

In the MPC minutes released on Friday, Kumar, one of the six members of the rate-setting panel, noted that slower growth largely reflected the weakness of the industrial sector, deteriorating the employment sentiment in Q2.