Indian industrialists , marketmen and economists since years have been singing only one CD of rate reduction. It is like shaving head of an overly obese person to reduce his weight.
Why promoters like Rahul Bajaj Mahindra TVS group never demand interest rate reduction.
Industrialists with inefficient track record, lacking vision, those who believe in siphoning off huge huge funds not only at project implementation stage ( over invoicing of power plants imported from China via Dubai invoicing, coal import same modus operandi) and those who borrow aggressively ( as if they don't intend to repay) are most vociferous for rate cut. Who is telling them borrow lacs of crores?
Product costs also increase due to successive raise in govt taxes. None has guts to tell govt to reduce taxes. They vl only target FD holders who have no lobby. They don't mind paying even 6 digit (gross) monthly salaries to shop floor workers and will not cut down their lavish styles of doing biz.
We compare only interest rates. Other countries have some other costs higher ( wage bill, transportation costs, administrative costs) compared to India.
Now we are moaning about low growth in bank deposits. They vl come down further if we keep on cutting down interest rates
Our country is different from advanced countries. There, govt takes care of senior citizens thru multiple schemes whether health care social security pension unemployment dole etc. So zero interest rates are immaterial to them and there, inflation much much lower than India. In India, do we have any of such schemes? No. Rather govt continues to suck out meagre savings till we die. There are crores of Indians who invest their hard earned savings ONLY in FD. No one thinks of this segment who are pillars of our entire banking industry. Such misguided partial rant only in India where billionaires want to multiply their billions at the cost of ordinary middle class wage earners. Shame to them
Disclosure: in my life I have never put a penny in FD