Kolkata, Sep 30 (UNI) The economic crisis forced upon the Globe by COVID-19 pandemic could spur reforms that might help the economy to a high-growth track and create jobs or could risk a decade of economic stagnation.
At a time when risk of inflation and low growth rates are threatening the economy, BCC&I organised a Webinar on Unlocking the “New Normal” Indian Economy: Spotlight on Indian Economy and Finance, and stressed on the need for creating a fiscal and GDP stimulus to rejuvenate the economy and create a national renewal fund which will boost infrastructure, agriculture and service sector spending alongside reviving the MSME sector.
They urged the government to rise spending and reduce interest rates to achieve a quick recovery.
The Webinar on ‘Unlocking the new normal Indian economy’ is the Series I of the two Series India Economic Conclave that The Chamber has organised on virtual platform this year.
The Series II will be held on October 14, focusing on Agriculture, Manufacturing, Logistics Infrastructure and Trade.
The session highlighted issues meant to boost economy, finance, agriculture and so on.. where speakers spoke in tandem on the need to control growth and inflation simultaneously.
The speakers focused on the shock the economy suffered because of the pandemic induced lock downs.
In their opinion it arrested the momentum which led to a dramatic plunge of 23.9 per cent in GDP growth during the April-June quarter.
They welcomed the RBI move to unveil a package of liquidity measures that was solely meant to lower interest rates and ensure credit availability.
While speaking on the Webinar Dr. Sajjid Z. Chinoy, Chief Indian Economist, J P Morgan and Member of the Advisory Council to the 15th Finance Commission, said there are chances of fiscal widening and a further rise of debt to GDP ratio from the current 70 percent to 85 per cent.
He focused on the gradual recovery of the economy through aggressive asset sale and target growth rate of around 7 per cent.
Chandra Sekhar Ghosh, CEO, Bandhan Bank expressed eagerness over the opening of the economy which was under a lock down for almost five months.
In his opinion the faster the economy opens the better are the chances for the government turning it around.
He said “rural is doing better than urban’’ and therefore steps should be immediately taken leaving enterprises to the hands of entrepreneurs.
Soumya Kanti Ghosh, Group Chief Economic Adviser, SBI, said the government should adopt an innovative approach to policy making which will bring back financial stability to the market through a coordinated approach between the government and RBI using discretionary measures about future monetary policies.
Ajay Thakur, Head-BSE SME pointed out the impacting of the banking and auto sectors at the bourses. However, he was optimistic about the bourses turning around with easy liquidity and high foreign and domestic inflows gradually going up and a rise in the pharma sector.
Sumit Bose, former revenue and finance secretary, Govt. of India and Chairperson BCC&I Economic Affairs Committee, moderated the session.
Overall, the speakers were of the opinion that in this hour of crisis the government is the key player alongside private capital and pointed out a number of opportunities through regulatory reforms, consumer confidence building and those created in the domestic, emerging and export markets, especially with China going back a little.
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