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Saturday, May 2, 2020

CNBCTV18-CII Poll: What Heads of Top Institutions Said on India's Strategy to Revive Economy After Covid-19



A snap poll of CEOs by CNBCTV18-Confederation of Indian Industries (CII) on Friday attracted the biggest names across industries. Here is what some of the top heads has to say about India's economic strategy.

SBI Chairman Rajnish Kumar

Expected that the exit from lockdown will be calibrated, I believe the current lockdown strategy is the only and the best option. We can expect a loss of Rs 14-15 lakh crore to the GDP due to the pandemic. I am hopeful of more relaxations by May 31 and expect economic activity to return by the festive season. There is excess liquidity in the system but no credit off-take. We will see a rise in NPAs after the second quarter. Some sort of restructuring of loans will be required going forward. We need to be watchful of NPAs in the second and third quarter and relevant policy response on it. MSMEs are in need of major support. Sectors operating at zero capacity will have to be treated differently.

Zarin Daruwala, CEO, Standard Chartered Bank

Some supply side issues were addressed in the short run. We will have to address issues of demand going forward. Exporters, real estate, hotels will face cash flow gaps. The real test will come post May 31 when companies will have to deal with cash flow issues. A three-month moratorium on loans may not be enough.

Hari Bhartia, Former President, CII and Co-Chairman & MD, Jubilant Life Sciences

A six-week lockdown is testimony to the fact that the new normal is not going away soon. We will have to live with COVID-19 and continue with operations.

Purnartha Investment

It's a great time to identify businesses that will create wealth. Leaders don’t cry, they try to navigate through the situation. This is a time of unprecedented crisis. The central bank is trying to ensure there are no bankruptcies. We believe it will ensure a bottom is made for stressed segments. India is facing a possible downgrade if the lockdown continues. India has lost Rs 12 lakh crore worth of GDP during the lockdown. India had recovered faster than other economies even in 2008. Companies which have relevant products and pricing power will outperform. We are definitely looking at Indian business driving consumption.

News18

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