By keeping the repo rate much above Mr. Rajan is pushing the Indian companies down and hard. Same time he is helping the FII to park their money in Indian banks and get hefty interest. It is well known that interest rates on deposits in the banks in western countries is much lower and many banks virtually offer a meagre interests on deposits. Many of our domestic countries are in huge debt and on verge of collapse. Foreign companies will take over these domestic ones in throw away prices. Mr. Rajan is actually helping the foreign companies.
By keeping the repo rate much above Mr. Rajan is pushing the Indian companies down and hard. Same time he is helping the FII to park their money in Indian banks and get hefty interest. It is well known that interest rates on deposits in the banks in western countries is much lower and many banks virtually offer a meagre interests on deposits. Many of our domestic countries are in huge debt and on verge of collapse. Foreign companies will take over these domestic ones in throw away prices. Mr. Rajan is actually helping the foreign companies.