INSUBCONTINENT EXCLUSIVE:
Niti Aayog Vice Chairman Rajiv Kumar said the government recognises the problem in the financial sectorDescribing the current economic
downturn as an "unprecedented situation", Niti Aayog Vice Chairman Rajiv Kumar said, "From last 70 years (we) have not faced this sort of
liquidity situation where the entire financial sector is in churn," news agency ANI reported
He also said the government "must do whatever it can to take away some of the apprehensions of the private sector"
The comments from the top economist come at a time the country's economy is facing the worst pace of growth in nearly five
years."Government recognises absolutely that the problem is in the financial sector
Liquidity is turning into insolvency
Therefore you have got to stop that," he said.Speaking on the liquidity situation, Mr Kumar said: "Nobody is trusting anybody else
It's not just the government and the private sector, within the private sector, nobody wants to lend to anybody else.""There are two
One, you may have to take steps which are out of the ordinary Secondly, I think the government must do whatever it can to take away some of
the apprehensions for the private sector," he added.India's GDP or gross domestic product grew 5.8 per cent in the January-March period
in the first quarter of the current financial year, due to low consumption, weak investments and an under-performing service sector,
attributed the slowdown to the ongoing crisis in shadow banks, which were funding the consumption drive before liquidity crisis hit them
hard last September, as well as weakening global growth and the resultant demand slump.Get Breaking news, live coverage, and Latest News
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