India GDP growth set to fall; firms prefer reforms over rate cut

Mumbai

ANTICIPATING data out on Friday will show weakening economic growth, India's finance ministry will argue for an interest rate cut, but bankers and company executives say the key to recovery lies in how fast Prime Minister Narendra Modi acts on reforms.

"Interest rates are also important, but more important is enabling policy directives from the government to resolve the issues affecting our sector," said K Rajagopal, chief executive officer of power producer Lanco Power.

The Lanco Infratech unit's biggest problem is a shortage of coal supplied by an inefficient state-run monop…