Even as agencies across the board have been lowering their growth forecast for India for FY21 given the pandemic situation, with the latest contraction by upto -6% being estimated, banker KV Kamath is high on hope as he speaks to Network 18 in an exclusive interview:
Here are listed his 9 pointers that are affirming India's strength to fight Covid 19 blues:
1. He does not see India to have a 'hard landing'
2. He does not see India to face the same extent of contraction as is being expected of.
3. In fact he sees Indian economy to expand, "which means that domestic companies will have a large space to operate as India is a very large market as we head towards the $5 trillion economy."
4. He see India to log double-digit growth rate for a long span i.e. more than 10-15 years time.
5. Amid RBI's interest rate cut move and government's stimulus, he sees growth to come back but warned that momentum should be maintained.
6. For some time the pain in the economy shall persist but India will come out of it, "the country is going to see shallow 'U' shaped recovery", he added.
7. He also asked banks to work in close coordination with the centre and RBI and ensure low interest rate regime continues.
8. The moratorium could be extended for a longer span may be a one-time moratorium, he said.
9. "In this new normal, we need to put concepts like deficit on hold", he said on fiscal deficit front.