Finance Minister Chidambaram insists on price cuts

chidambaram

The global turmoil in economy is on peak and many companies are involved in the cost cutting strategies.As a impact of this,layoffs and shut downs are coming into act.

The Dunlop,Tata Motors have shut down their production plants and cuts in production units.More companies are planning for layoffs and shut down.

Yesterday the Finance Minister to an interview to Television,said that the companies instead of sacking the employees and shutting down their projects, they can go with cutting the prices of their products.He also said that the move of shutdown and layoffs are narrow minided idea and it could result in worst manner and slash in sensex prices.The only choice could be , cutting down the cost of products being produced.This will make a great impact on the progress of the firms.

Finance minister also said that the India will have a growth of 8 percent in this fiscal year, though the expected was 9 percent.Earlier, The FM has requested the banks and financial sectors to reduce the interests on loans especially on the home loans.Though initially the idea was been dropped by the banks,later ICICI and Axis has accepted it and they have announced that there will be cut in interest on loans.The home loans can have rate cut of 5-10%.

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