New Delhi: The ongoing slowdown in the country has shaken the industry. Every sector is registering a decline. Companies have started retrenchment to control expenses. The Opposition was targeting the Government on this. Now, the people in the Government are also accepting it.
Rajiv Kumar, the vice-chairman of the NITI Aayog, has admitted that the Indian economy had not faced such a situation in the past 70 years. NITI Aayog Vice-Chairman Kumar said that no one in the private sector is willing to lend.
Markets continue to fall for third consecutive day, Sensex tumbles 587 points
Rajeev said the cash crunch has increased after demonetization and GST. Kumar also advised the government to step out of the way. Describing the current recession as unprecedented, Kumar said, "Today nobody is believing in anybody. It is not only the Government and the private sector. Nobody in the private sector today wants to lend to anybody else. Kumar said that after demonetization, GST and The insolvency law, the situation has changed drastically."
For private-sector, this was the worst year in a decade
He said, "earlier, about 35 percent of the cash was available which has now come down considerably. So, the situation is getting very complicated now." NITI Aayog Vice-Chairman Rajiv Kumar said that from 2009 to 2014, loans were disbursed without any thought, leading to an increase in NPA after 2014.
Rajiv said that due to the increase in NPAs, the ability of banks to lend new loans has now come down. At the same time, Rajeev said, the NBFCs have made up for the low lending by the banks. NBFCs' debt has increased by 25 percent.
Petrol diesel prices remain stable for third consecutive day, but big changes may soon