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Fundamentals of Indian economy ‘very very strong’: CEA
Oct-17-2019

Stressing that the fundamentals of Indian economy are ‘very very strong’, Chief Economic Advisor (CEA) K V Subramanian has called upon the industry to start making investments. He noted that fundamentals of the economy have not changed and it would be back on the 7-8 percent growth path. On more than Rs 40,000 crore of dues pending to small companies, he nudged large companies to ensure timely payment to the Micro, Small & Medium Enterprises (MSME) sector as small players are dependent on cash flows.

The CEA further said the slowdown in the economy is due to a decline in investment, which is a key driver. He also said corporates must recognize that in a slowdown labour is available cheaper and so it is the time to make investments and added that investment must be made from a long-term perspective. He stated that the government has been at its toes addressing various aspects of the economy.

In October 2019, the Reserve Bank of India (RBI) sharply reduced India’s GDP growth projection to 6.1% for 2019-20 from 6.9% estimated in the August credit policy. The central bank’s estimates come in the wake of GDP growth plunged to 5% in the first quarter of 2019-20, touching a six-year low, on a massive slowdown in consumption and private sector investments.

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