The Reserve Bank of India on Thursday said the investment climate in the country was very healthy now on the back of high growth in capital goods production and a remarkable performance by corporate sector in 2004 fiscal.
"The corporate sector had one of the best year in 2004. There was a high growth of 20 per cent in capital goods production and a healthy growth in the imports of capital goods," Rakesh Mohan, deputy governor, RBI, told reporters after the central bank's board meeting in Chennai.
"The confluence of circumstance" makes the investment climate in the country very healthy, Mohan said, adding that there was a healthy pick up in credit in non-food sector from the second half of the last fiscal.
Commenting on the interest rates, the deputy governor said there was excess liquidity in the system of Rs 60,000 crore (Rs 600 billion) and there would not be any pressure on interest rates.
"There is good deal of resources in the system," he said, adding that there was no change in RBI's views on interest rates from what was announced in the RBI's annual policy statement.
