Categories: Business

After the lockdown is complete, the government will face a big challenge to put the financial sector on its feet.


Panagariya says Govt's biggest challenge will be putting financial sector back on feet

new Delhi. A former NITI Aayog vice-chairman Arvind Panagariya said on Monday that the 'number one challenge' would be to put the financial sector back on its feet after bringing the Indian economy out of lockdown amid the Kovid-19 crisis. In an interview, Pangarhia said that India is facing a health crisis due to which the economy has come to a sudden halt.

He said that we have to come out of this health crisis to reopen the economy and bring it back to the pre-Kovid-19 era. Once this is done, the weakness that we will need to overcome is to remove the bottlenecks in the financial markets. We left it unresolved before the Kovid-19.

Panagariya said that once the economy is opened, the biggest challenge of the government will be to put the financial sector back on its feet. Prime Minister Narendra Modi had on March 24, the first 21-day lockdown to limit the spread of Kovid-19. Since then it has been carried forward five times with various changes. The fifth phase of the lockdown with various concessions will continue till June 30.

On the current macroeconomic situation in India, economist Panagariya said that when people's lives would become smooth and normal without masks and community distance. The country's economic growth will accelerate on its own. He said that can we guess where the country's GDP will stop in 2020-21. They feel that this cannot be estimated because there is too much uncertainty, when will we be able to live life in a normal way without mask and community distance.

Pangarhia said that it all depends on when the corona virus vaccine is made or when its treatment is available. Or when the virus itself ends.

This post was published on June 2, 2020 3:55 am

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