He added that the borrowing plans of the government should not be a reason for it to persuade RBI to further tinker with rates as it would affect the efforts to contain fiscal deficit.

Under current circumstances those who posses debt instruments are not releasing them into the market because of limited yield.

Reforms in debt market would help them release such commercial papers as their yield will increase, said Jindal.

Although the industry is still struggling to come out of the meltdown, hopes have revived recently with core sectors posting good growth rates, the chamber said.

Assocham added that RBI might upwardly revise its growth target of the gross domestic product (GDP) to close to 7 percent for current fiscal.

The central bank had earlier projected 6 to 6.5 percent GDP growth for 2009-10.