Varma added that out of the four engines of growth for the economy, exports and government spending supported the Indian economy through the pandemic, but other engines need to pick up the baton now.
Representative Image
India’s economic growth is now ‘extremely fragile’ and needs all the support that it can get, as private consumption and capital investment are yet to pick up, RBI Monetary Policy Committee (MPC) member Jayanth R Varma said on Friday.
ADVERTISEMENT
Varma added that out of the four engines of growth for the economy, exports and government spending supported the Indian economy through the pandemic, but other engines need to pick up the baton now.
Also Read: Coordinated efforts taken to contain Chinese loan apps: Nirmala Sitharaman in Rajya Sabha
“I like to think in terms of the four engines of growth for the economy: exports, government spending, capital investment and private consumption...while exports cannot be the main driver of growth because of the global slowdown, government spending is necessarily limited by fiscal constraints.”
Varma said that concerns about future growth prospects appear to be deterring capital investment. “The critical question is whether the fourth engine of private consumption will remain buoyant after the pent-up demand dissipates over the coming months. I, therefore, fear that economic growth is now extremely fragile and needs all the support that it can get,” he said.
This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever
Subscribe today by clicking the link and stay updated with the latest news!" Click here!
