MUMBAI, Dec. 30 (Xinhua) — Indian economy should gradually recover and overcome its slowdown in the calendar year 2020 backed by fiscal and monetary measures with easing global trade tensions, said a statement by an industry body — the Confederation of Indian Industry (CII) on Monday.
“Nascent signs of recovery are noted in the form of improved PMIs of manufacturing & services, jump in passenger air traffic, sharp moderation in the decline in sales of passenger cars among others”, President of CII Vikram Kirloskar said.
“Though we may continue to see a subdued GDP print in the third quarter as well, but the quarters thereafter are likely to see a rebound,” he said.
Asia’s third largest economy has grown at its slowest pace in six years to 4.5 percent in July-September quarter and its current banking credit growth has been at its five-year low below eight percent.
The year 2019 will be remembered for the systemic clean-up of the financial sector, which might have resulted in short-term pain for the economy. However, this tidying up will have extensive positive ramifications for the economy in the short to medium term, the CII statement said.
“To paint an ideal scenario, the acquisition of land should be simplified, the tax regime should be made stable, wages should be determined in accordance with the productivity levels, and there should be lowest possible deterrents to timely completion of projects,” Vice President of CII T V Narendran said.