New Delhi, August 23
Calling “green shoots” of financial revival as a mechanical rebound, former Reserve Bank Governor D Subbarao says India’s quick and medium time period development prospects proceed to stay grim and the federal government mustn’t learn an excessive amount of into the financial exercise getting back from the depressed base of lockdown.
Indian financial system was in a troubled state when the pandemic hit the world. Before the Covid-19 disaster hit India, the true GDP development had moderated from 7 per cent in 2017-18 to six.1 per cent in 2018-19 and to 4.2 per cent in 2019-20.
“When the crisis is behind us — and I hope that is soon enough — these problems are going to be much bigger. Fiscal deficit is going to be much higher, the debt burden much larger and financial sector in a worse shape,” he stated. — PTI