Concerned over high lending costs impacting key sectors such as automobiles, the government asked bankers on Friday to have a re-look at their interest rates in order to stimulate growth.
Emerging from a meeting called by Finance Minister P Chidambaram with bankers and representatives of automobiles, auto components and paper industry, Maruti Suzuki India Managing Director Jagdish Khattar told reporters that the minister had taken up the issue of high interest rates.
"He (Chidambaram) asked bankers to have a re-look at interest rates in order to stimulate demand. Costs of auto industry have increased and everybody understands there is a problem and it has to be rectified," Khattar said.
Tata Motors Managing Director Ravi Kant also said the auto industry raised the issue of high interest rates that has resulted in declining