Mfg Slump Prompted Feb Rate Cut: RBI Rate Panel's Kumar

A sharp slowdown in India's manufacturing sector - a key driver of job creation - was a major factor in the monetary policy committee's (MPC) decision to cut the key repo rate earlier this month, an external member told Reuters.

- Reuters

MUMBAI:

"In particular, there was a concern about the weaknesses of the manufacturing sector, which is important for job creation, due to subdued urban consumption and slow growth of private investments," Nagesh Kumar said on Friday, adding the views were his own and not those of the committee.

"The challenging global economic environment with threat of major trade wars erupting also does not bode well for the manufacturing sector," he said.