Reserve Bank of India (RBI) Monetary Policy Committee (MPC) member Jayant R Verma voiced concern over the country's overall economic condition.
New Delhi: Even before the wheels of the economy are fully operational after overcoming the corona epidemic, the covid is again eye-catching. Taking lessons from the past, many believe that if Covid starts to take hold like that, the economy will be hit again. Meanwhile, Reserve Bank of India (RBI) Monetary Policy Committee (MPC) member Jayant R Verma voiced concern over the country's overall economic condition. He said on Friday that, India's economic growth is in a "extremely fragile" state and it now needs full support. He also said that private consumption and capital investment have not picked up yet. That is why economic growth is weak. He fears that the Indian economy will not see growth as per its expectations and needs.
According to news agency sources, Verma said, “There are four 'engines' to drive the economy forward. Two of these, engine exports and government spending, helped propel the economy during the coronavirus pandemic. But now other engines have to take up the baton.” According to him, two other engines of economic growth are capital investment and private consumption. They have no speed now.
According to several media reports, Verma said the slowdown in the global economy may not be the main driver of export growth. At the same time, government spending is also limited due to financial problems. He also said that experts have been waiting for a long time for private investment to increase. However, capital investment is affected by concerns about future growth prospects. He said the important question is whether the fourth engine i.e. personal consumption will increase in the coming days. In this scenario, I fear, economic growth is at a critical juncture and needs full support.
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