NITI Aayog Vice Chairman Rajiv Kumar has given a big statement about the current state of the Indian economy. Rajiv Kumar has said that today the entire Financial system is at risk and no one has met such a situation in the last 70 years. Rajiv Kumar said that no one is ready to give loans in the private sector. Rajiv said that the cash crisis has increased after demonetisation and GST. Kumar also advised the government to take steps out of the box.
Describing the current recession situation as unprecedented, Rajiv Kumar said, "Today no one is trusting anyone. It is not just a matter of the government and the private sector. In the private sector today nobody wants to give loans to anyone else." "
Rajiv Kumar said that after demonetisation, GST and insolvency law, the situation has changed a lot. He said that earlier about 35 percent of the cash used to be available, which has reduced considerably now. Due to this, the situation is becoming very complicated now.
Rajiv Kumar said that between 2009 and 2014, loans were disbursed without much thought, which led to an increase in NPA after 2014. Rajeev said that due to increase in NPA, now the capacity of new lending by banks has come down. Also, Rajiv said that the NBFC has compensated the banks for giving less loans. NBFC debt has Increased by 25 per cent. He said that some steps have also been announced in the recently introduced budget to give a boost to the economy.
