new Delhi. Former Reserve Bank Governor Raghuram Rajan said on Tuesday that banks' bad loans, or NPAs, could increase significantly in the next six months. He also said that the sooner the problem is identified, the better it will be. The lockdown for Kovid-19 and its containment has adversely affected the companies and many of them are facing difficulties in repaying the loan installment.
In a session of the India Policy Forum 2020 organized by the National Council of Applied Economic Research (NCAER), Rajan said that if we really recognize the actual level of NPAs then the level of non-performing assets (NPAs) in the next six months will be quite unpredictable. Is going.
We are in problem and the sooner we accept it, the better. Because we really need to deal with this problem. Referring to an article on economic reforms led by Prime Minister Narendra Modi published on Tuesday, he said that it has talked about the success of Jan Dhan accounts but some economists differ from this. Rajan said that we are still having difficulty in transferring the benefits to the targeted people. People are still talking about universalization because we cannot aim.
Jan Dhan did not work the way it was promoted. However he said that one positive aspect of the Indian economy is the agricultural sector which is doing really well. Rajan said that of course the government has pushed the reforms forward. These reforms were being talked about for a long time. A large part of the economy will benefit from its proper implementation.
Former RBI Governor D Subbarao has said that the government needs to encourage growth by taking advantage of the performance of the agricultural sector amid the possibility of a monsoon being favorable. Addressing the webinar organized by the Economic Research Institute NCAER on Tuesday, Subbarao said that the rural economy is performing somewhat better than the urban economy. The urban economy is still reeling under the Kovid-19 crisis. The rural economy accounts for 65 percent of the total population, while its contribution to the gross domestic product (GDP) is 25 percent. The rural economy has proved to be slightly better because of the expanded MNREGA spending.
Subbarao said that the expenditure under the Pradhan Mantri Garib Kalyan Yojana (PMGKY) and the purchase of agricultural produce by the Food Corporation of India (FCI) has brought money into the hands of the farmers. Apart from this, the situation in the agricultural sector is also likely to be better than the monsoon. The former governor said that there is some good thing in the midst of all these weak scenarios. It is to see how we take advantage of this and encourage the growth of the economy. As part of reforms in the agriculture sector, the government has amended the over sixty-year-old Essential Commodities Act and excluded products such as cereals, edible oils, oilseeds, pulses, onions and potatoes.
This post was published on July 15, 2020 10:00 am
Photo: WHEAT SOWING DOWN 37 PC S Use of machine in agri sector increased new Delhi. Due to the need…
Photo: PTI Patanjali considering bidding for IPL title sponsorship new Delhi. Baba Ramdev's Patanjali Ayurved is considering a bid to…