India’s Economic Fundamentals are Strong and is poised for Growth
India’s economic fundamental are strong and is poised for growth in near term despite IMF lowering the India growth rate to 4.8% said Prof. Saurabh Agarwal in an interview on Tehzeeb TV while commenting on the World Economic Forum Annual Meeting 2020. Prof. Saurabh Agarwal is Professor of Finance at IIF CCMS Greater Noida. He further opined and supported the views expressed by Shri. Piyush Goyal and Shri.Kamal Nath. A number of steps like collateral free loans for AA rated exporters by Export Credit Guarantee Corporation (ECGC) and linking loans costs to repo rate will not only ease the availability of loans but also make the cost of loans cheaper.
Prof. Agarwal also supported the government for not joining the Regional Comprehensive Economic Partnership (RCEP) as it would mean free trade between China and India. Indian manufacturers who are required to comply with more than 1800 rules and lack automation are not ready for such free trade as this would completely disrupt all our Micro, Small and Medium enterprises (MSME). Prof. Agarwal said that international investors should have faith in strong consumer base of 1.3 billion people and their aspirations of becoming a stronger nation. The recent structural changes like better tax compliance under the GST regime and e-Governance measures would ease the process of doing business in India. Lower corruption, better roads and infrastructure, universal health coverage, better sanitation and availability of gas and electricity across all rural households and banking facilities for the poor through Jan Dhan accounts would provide a major push to increased consumption in near future. Focus on creating wealth from waste would also help India in its commitment towards Sustainable Developments Goals (SDGs) and preventing Climate Change. Prof. Agarwal was participating in a discussion on Global, regional and industry agenda for better cooperation between governments, international institutions and industry.