Finance minister Nirmala Sitharaman called for a “significant” reduction in RBI’s policy rate and said the government did not intend to review the budget proposal for overseas borrowing, the Economic Times reported on Monday.India’s benchmark 10-year bond yield was down 10 basis points at 6.43% after falling to 6.42% immediately after market opened on the back of her comments.The minister also said the increase in surcharge on foreign portfolio investments (FPI) was not intended to hurt investors, according to an interview published by the paper.The Rashtriya Swayamsevak Sangh, the Bharatiya Janata Party’s fountainhead, had demanded that the Narendra Modi government review its plan to raise money by selling foreign currency bonds, Reuters had reported earlier this month.Also read: How Should India’s New Social Stock Exchange be Regulated? “I am not doing any review. I have not been asked by anyone to do a review,” Sitharaman told the newspaper.The minister also told the paper there was room for further interest rate cuts.“I’ll honestly wish rate cut … and yes a significant rate cut, would do a lot of good for the country,” Sitharaman told the paper in an interview.“We will now have to look at that route with a lot more hope. And, the industry also feels that there is space for it.”Indian shares pared early gains and moved lower on Monday with the broader NSE Nifty falling 0.3%.(Reuters)