"Unprecedented In 70 Years": NITI Aayog Vice Chairman On Liquidity Crisis
"Unprecedented In 70 Years": NITI Aayog Vice Chairman On Liquidity Crisis
বাংলায় পড়ুনதமிழில் படிக்க हिंदी में पढ़ें
The comments from the top economist come at a time the country's economy is facing the worst pace of growth in nearly five years.
Economy | Edited by Sandeep Singh | Updated: August 24, 2019 09:23 IST
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NITI Aayog Vice Chairman Rajiv Kumar said the government recognises the problem in the financial sector
Describing the current economic downturn as an "unprecedented situation", NITI Aayog Vice Chairman Rajiv Kumar said, "From last 70 years (we) have not faced this sort of liquidity situation where the entire financial sector is in churn," news agency ANI reported. He also said the government "must do whatever it can to take away some of the apprehensions of the private sector". The comments from the top economist come at a time the country's economy is facing the worst pace of growth in nearly five years.
"Government recognises absolutely that the problem is in the financial sector. Liquidity is turning into insolvency. Therefore you have got to stop that," he said.
ANI
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@ANI
#WATCH: Rajiv Kumar,VC Niti Aayog says,"If Govt recognizes problem is in the financial sector... this is unprecedented situation for Govt from last 70 yrs have not faced this sort of liquidity situation where entire financial sector is in churn &nobody is trusting anybody else."
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Speaking on the liquidity situation, Mr Kumar said: "Nobody is trusting anybody else. It's not just the government and the private sector, within the private sector, nobody wants to lend to anybody else."
"There are two issues. One, you may have to take steps which are out of the ordinary... Secondly, I think the government must do whatever it can to take away some of the apprehensions for the private sector," he added.
India's GDP or gross domestic product grew 5.8 per cent in the January-March period. For the financial year ended March 31, the economic growth stood at 6.8 per cent.
GDP growth is likely to slow down further to 5.7 per cent in the first quarter of the current financial year, due to low consumption, weak investments and an under-performing service sector, according to a report by Nomura.
Nomura however added that the economy is expected to see some recovery in the July-September quarter.
57 COMMENTS
It attributed the slowdown to the ongoing crisis in shadow banks, which were funding the consumption drive before liquidity crisis hit them hard last September, as well as weakening global growth and the resultant demand slump.
Current economic slowdown 'unprecedented', says Niti Aayog's Rajiv Kumar
Rajiv Kumar says India is facing such an economic downturn for the first time in 70 years, a liquidity crisis wherein lenders have stopped funding businesses, resulting in a situation where they have to survive on cash
twitter-logo BusinessToday.In New Delhi Last Updated: August 23, 2019 | 13:30 IST
Current economic slowdown 'unprecedented', says Niti Aayog's Rajiv Kumar
Niti Aayog Vice-Chairman Rajiv Kumar
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Niti Aayog Vice-Chairman Rajiv Kumar has said the ongoing financial crisis in India is "unprecedented". He said the government must take steps to handle the ongoing economic slowdown. He said the entire economic situation had changed after implementation of initiatives like demonetisation, Goods and Service Tax and Insolvency and Bankruptcy Code.
He said India was facing such an economic downturn for the first time in 70 years, a liquidity crisis wherein lenders had stopped funding businesses, resulting in a situation where they had to survive on cash.
"This is an unprecedented situation for the government of India. In the last 70 years nobody had faced this sort of situation where the entire financial system is under threat and nobody is trusting anybody else. Within the private sector nobody is ready to lend, everyone is sitting on cash," said Kumar, addressing the Hero Mindmine summit on Thursday.
#WATCH: Rajiv Kumar,VC Niti Aayog says,"If Govt recognizes problem is in the financial sector... this is unprecedented situation for Govt from last 70 yrs have not faced this sort of liquidity situation where entire financial sector is in churn &nobody is trusting anybody else." pic.twitter.com/Ih38NGkYno
— ANI (@ANI) August 23, 2019
He said the government would need to take extraordinary steps to come out of the crisis. "It takes a lot of courage to break the inertia...I think the government must do whatever it can to take away some of the apprehension of the private sector," he added, reported IANS.
He said initiatives such as demonetisation, GST and IBC had changed the rules of the game and that the current liquidity crisis had led to a complex situation. "The earlier period where you had 35 per cent cash sloshing around has become much less now. All of these put together is a fairly complex situation. There is no easy answer," he added.
Current economic slowdown 'unprecedented', says Niti Aayog's Rajiv Kumar
Rajiv Kumar says India is facing such an economic downturn for the first time in 70 years, a liquidity crisis wherein lenders have stopped funding businesses, resulting in a situation where they have to survive on cash
twitter-logo BusinessToday.In New Delhi Last Updated: August 23, 2019 | 13:30 IST
Current economic slowdown 'unprecedented', says Niti Aayog's Rajiv Kumar
Niti Aayog Vice-Chairman Rajiv Kumar
WE RECOMMEND
Slowdown Blues: Kiss of death for Indian auto industry as sales fall up to 40% in July Subhash Garg exit: PMO 'unaware' of implications of sovereign debt is a specious argument
MORE FROM THE AUTHOR
IndiGo promoters' spat: Rakesh Gangwal says will support amends to Articles of Association for board expansion INX Media case: CBI sends letters rogatory to five nations
Niti Aayog Vice-Chairman Rajiv Kumar has said the ongoing financial crisis in India is "unprecedented". He said the government must take steps to handle the ongoing economic slowdown. He said the entire economic situation had changed after implementation of initiatives like demonetisation, Goods and Service Tax and Insolvency and Bankruptcy Code.
He said India was facing such an economic downturn for the first time in 70 years, a liquidity crisis wherein lenders had stopped funding businesses, resulting in a situation where they had to survive on cash.
"This is an unprecedented situation for the government of India. In the last 70 years nobody had faced this sort of situation where the entire financial system is under threat and nobody is trusting anybody else. Within the private sector nobody is ready to lend, everyone is sitting on cash," said Kumar, addressing the Hero Mindmine summit on Thursday.
ANI
✔
@ANI
#WATCH: Rajiv Kumar,VC Niti Aayog says,"If Govt recognizes problem is in the financial sector... this is unprecedented situation for Govt from last 70 yrs have not faced this sort of liquidity situation where entire financial sector is in churn &nobody is trusting anybody else."
Embedded video
1,683
7:50 PM - Aug 22, 2019
Twitter Ads info and privacy
1,017 people are talking about this
He said the government would need to take extraordinary steps to come out of the crisis. "It takes a lot of courage to break the inertia...I think the government must do whatever it can to take away some of the apprehension of the private sector," he added, reported IANS.
He said initiatives such as demonetisation, GST and IBC had changed the rules of the game and that the current liquidity crisis had led to a complex situation. "The earlier period where you had 35 per cent cash sloshing around has become much less now. All of these put together is a fairly complex situation. There is no easy answer," he added.
He also asked the government not to hold back due payments to the private sector. Talking about the NBFC crisis in India, he said the government had prevented many of the shadow banks from collapsing and that it was doing everything possible to get out of the crisis. He said the Centre would need to "eliminate apprehension from the minds of private sector players" to boost investments. "This is an unprecedented situation and we are still grappling to find the right modality to get a fix," he said.
বাংলায় পড়ুনதமிழில் படிக்க हिंदी में पढ़ें
The comments from the top economist come at a time the country's economy is facing the worst pace of growth in nearly five years.
Economy | Edited by Sandeep Singh | Updated: August 24, 2019 09:23 IST
57
COMMENTS
NITI Aayog Vice Chairman Rajiv Kumar said the government recognises the problem in the financial sector
Describing the current economic downturn as an "unprecedented situation", NITI Aayog Vice Chairman Rajiv Kumar said, "From last 70 years (we) have not faced this sort of liquidity situation where the entire financial sector is in churn," news agency ANI reported. He also said the government "must do whatever it can to take away some of the apprehensions of the private sector". The comments from the top economist come at a time the country's economy is facing the worst pace of growth in nearly five years.
"Government recognises absolutely that the problem is in the financial sector. Liquidity is turning into insolvency. Therefore you have got to stop that," he said.
ANI
✔
@ANI
#WATCH: Rajiv Kumar,VC Niti Aayog says,"If Govt recognizes problem is in the financial sector... this is unprecedented situation for Govt from last 70 yrs have not faced this sort of liquidity situation where entire financial sector is in churn &nobody is trusting anybody else."
Embedded video
1,684
7:50 PM - Aug 22, 2019
Twitter Ads info and privacy
1,017 people are talking about this
Speaking on the liquidity situation, Mr Kumar said: "Nobody is trusting anybody else. It's not just the government and the private sector, within the private sector, nobody wants to lend to anybody else."
"There are two issues. One, you may have to take steps which are out of the ordinary... Secondly, I think the government must do whatever it can to take away some of the apprehensions for the private sector," he added.
India's GDP or gross domestic product grew 5.8 per cent in the January-March period. For the financial year ended March 31, the economic growth stood at 6.8 per cent.
GDP growth is likely to slow down further to 5.7 per cent in the first quarter of the current financial year, due to low consumption, weak investments and an under-performing service sector, according to a report by Nomura.
Nomura however added that the economy is expected to see some recovery in the July-September quarter.
57 COMMENTS
It attributed the slowdown to the ongoing crisis in shadow banks, which were funding the consumption drive before liquidity crisis hit them hard last September, as well as weakening global growth and the resultant demand slump.
Current economic slowdown 'unprecedented', says Niti Aayog's Rajiv Kumar
Rajiv Kumar says India is facing such an economic downturn for the first time in 70 years, a liquidity crisis wherein lenders have stopped funding businesses, resulting in a situation where they have to survive on cash
twitter-logo BusinessToday.In New Delhi Last Updated: August 23, 2019 | 13:30 IST
Current economic slowdown 'unprecedented', says Niti Aayog's Rajiv Kumar
Niti Aayog Vice-Chairman Rajiv Kumar
WE RECOMMEND
Slowdown Blues: Kiss of death for Indian auto industry as sales fall up to 40% in July Subhash Garg exit: PMO 'unaware' of implications of sovereign debt is a specious argument
MORE FROM THE AUTHOR
Mission Mangal box office collection Day 9: Akshay Kumar-Vidya Balan film earns Rs 136 crore IndiGo promoters' spat: Rakesh Gangwal says will support amends to Articles of Association for board expansion
Niti Aayog Vice-Chairman Rajiv Kumar has said the ongoing financial crisis in India is "unprecedented". He said the government must take steps to handle the ongoing economic slowdown. He said the entire economic situation had changed after implementation of initiatives like demonetisation, Goods and Service Tax and Insolvency and Bankruptcy Code.
He said India was facing such an economic downturn for the first time in 70 years, a liquidity crisis wherein lenders had stopped funding businesses, resulting in a situation where they had to survive on cash.
"This is an unprecedented situation for the government of India. In the last 70 years nobody had faced this sort of situation where the entire financial system is under threat and nobody is trusting anybody else. Within the private sector nobody is ready to lend, everyone is sitting on cash," said Kumar, addressing the Hero Mindmine summit on Thursday.
#WATCH: Rajiv Kumar,VC Niti Aayog says,"If Govt recognizes problem is in the financial sector... this is unprecedented situation for Govt from last 70 yrs have not faced this sort of liquidity situation where entire financial sector is in churn &nobody is trusting anybody else." pic.twitter.com/Ih38NGkYno
— ANI (@ANI) August 23, 2019
He said the government would need to take extraordinary steps to come out of the crisis. "It takes a lot of courage to break the inertia...I think the government must do whatever it can to take away some of the apprehension of the private sector," he added, reported IANS.
He said initiatives such as demonetisation, GST and IBC had changed the rules of the game and that the current liquidity crisis had led to a complex situation. "The earlier period where you had 35 per cent cash sloshing around has become much less now. All of these put together is a fairly complex situation. There is no easy answer," he added.
Current economic slowdown 'unprecedented', says Niti Aayog's Rajiv Kumar
Rajiv Kumar says India is facing such an economic downturn for the first time in 70 years, a liquidity crisis wherein lenders have stopped funding businesses, resulting in a situation where they have to survive on cash
twitter-logo BusinessToday.In New Delhi Last Updated: August 23, 2019 | 13:30 IST
Current economic slowdown 'unprecedented', says Niti Aayog's Rajiv Kumar
Niti Aayog Vice-Chairman Rajiv Kumar
WE RECOMMEND
Slowdown Blues: Kiss of death for Indian auto industry as sales fall up to 40% in July Subhash Garg exit: PMO 'unaware' of implications of sovereign debt is a specious argument
MORE FROM THE AUTHOR
IndiGo promoters' spat: Rakesh Gangwal says will support amends to Articles of Association for board expansion INX Media case: CBI sends letters rogatory to five nations
Niti Aayog Vice-Chairman Rajiv Kumar has said the ongoing financial crisis in India is "unprecedented". He said the government must take steps to handle the ongoing economic slowdown. He said the entire economic situation had changed after implementation of initiatives like demonetisation, Goods and Service Tax and Insolvency and Bankruptcy Code.
He said India was facing such an economic downturn for the first time in 70 years, a liquidity crisis wherein lenders had stopped funding businesses, resulting in a situation where they had to survive on cash.
"This is an unprecedented situation for the government of India. In the last 70 years nobody had faced this sort of situation where the entire financial system is under threat and nobody is trusting anybody else. Within the private sector nobody is ready to lend, everyone is sitting on cash," said Kumar, addressing the Hero Mindmine summit on Thursday.
ANI
✔
@ANI
#WATCH: Rajiv Kumar,VC Niti Aayog says,"If Govt recognizes problem is in the financial sector... this is unprecedented situation for Govt from last 70 yrs have not faced this sort of liquidity situation where entire financial sector is in churn &nobody is trusting anybody else."
Embedded video
1,683
7:50 PM - Aug 22, 2019
Twitter Ads info and privacy
1,017 people are talking about this
He said the government would need to take extraordinary steps to come out of the crisis. "It takes a lot of courage to break the inertia...I think the government must do whatever it can to take away some of the apprehension of the private sector," he added, reported IANS.
He said initiatives such as demonetisation, GST and IBC had changed the rules of the game and that the current liquidity crisis had led to a complex situation. "The earlier period where you had 35 per cent cash sloshing around has become much less now. All of these put together is a fairly complex situation. There is no easy answer," he added.
He also asked the government not to hold back due payments to the private sector. Talking about the NBFC crisis in India, he said the government had prevented many of the shadow banks from collapsing and that it was doing everything possible to get out of the crisis. He said the Centre would need to "eliminate apprehension from the minds of private sector players" to boost investments. "This is an unprecedented situation and we are still grappling to find the right modality to get a fix," he said.
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