Industry body FICCI on Wednesday welcomed the appointment of former Economic Affairs Secretary and current member of the Finance Commission, Shaktikanta Das, as RBI Governor.

The government has done well by appointing an economic administrator and manager of his eminence, stature and wide-ranging capabilities to guide RBI and Indian economy at this crucial juncture, FICCI said it a release.

"It's a great choice. Mr Das has a 360-degree understanding of the financial issues facing the Indian economy and he also understands global issues due to his involvement with G20," said FICCI President Rashesh Shah added .

"The wide-ranging experience in handling the economic matters will certainly help Mr Das in dealing with the critical issues facing the economy. We need to bring down the real interest rates, improve liquidity and promote growth and employment. Improving credit flow to the real economy, especially in sectors like MSME and housing is critical at this juncture," he said

RBI is a strong institution and under Mr Das's leadership it will be able to promote macro prudential stability and efficiently manage the monetary policy.

India's long-term growth story is strong, and the potential for sustained GDP growth of 8 per cent plus is achievable by continuing the reform agenda and improving credit availability to the industry, Shah said.