	indian rate cuts to spark industry agriculture the indian finance ministry s announcement in parliament yesterday changing the nation s  rate structure will benefit industry and agriculture by providing loans at lower  bankers and brokers said the changes effective today included reducing commercial bank lending rates that have ranged between pct and pct by one percentage point new rates which affect both indian and foreign banks also include a one percentage point gain to an annual pct on deposits of two years or more but less than five bank deposits of five years or more carrying pct  have been abolished bankers said the  rate modifications reflect the government s concern to reduce the costs of borrowing and help improve world competitiveness of indian goods there is likely to be a shift to short term bank deposits by long term depositors bankers predicted this will create the flexibility to draw and re invest funds in either equity shares or short term bank deposits they said a merchant banker also said reduced manufacturing costs due to lower lending rates are likely to boost the share market tata steel a trend setter on the bombay stock exchange opened today higher at rupees against yesterday s closing of rupees a stockbroker said investors may be less enthusiastic now to buy convertible and non convertible debentures because the finance ministry has reduced the annual  rate to pct and pct respectively from and pct respectively but overall debenture prospects remain bright because the rates of  on them will still be higher than what banks pay for deposits of similar maturity a merchant banker said reuter 
