Need to look at cost of doing biz to up manufacturing: Amitabh Kant

India must cut the statutory liquidity ratio (SLR) to boost job-intensive manufacturing, former NITI Aayog chief executive Amitabh Kant said.

Kant said the production-linked incentive (PLI) is a short-term solution for the manufacturing sector, but in the long term, "we need to reduce the cost of doing business through measures like cutting the SLR, which can reduce the cost of credit".

"Statutory liquidity ratio at 18% is too high for India ...

I am a great believer in bringing it down because flow of credit to manufacturing sectors will be the key in the long run," Kant told PTI.

Without sharing the ideal level of SLR, the mandatory share of net demand and time liabilities or deposits banks invest in government securities, the retired bureaucrat maintained that the cost of credit and availability of resources will be essential to help the manufacturing sector.

SLR was cut to 18 per cent over a few years, but it has remained at that level since then.

While it helps the government'