The Chief Economic Advisor K Subramanian on Saturday said Economic Survey 2021 is showing that fiscal support should continue till we get to pre-COVID growth.
The CEA said the Economic Survey recommends countercyclical fiscal policy and the country must implement it. He said, "During times like these, basically, the government should step in to do more spending and consolidate when growth has actually come back."
In this special Economic Survey Townhall, Subramanian interacted with Kiran Mazumdar Shaw, executive chairperson of Biocon; Pawan Goenka, MD & CEO of M&M; Vinayak Chatterjee, chairman of Feedback Infra; Chandrajit Banerjee, director-general of CII; Niranjan Hiranandani, co-founder & MD of the Hiranandani Group; Rashesh Shah, Chairman & CEO of the Edelweiss Group and former president of FICCI; Vikram Kirloskar, vice-chairman of Toyota Kirloskar Motor; Piruz Khambatta, chairman of Rasna Private Limited; Abhimanyu Munjal, joint MD & CEO of Hero Fincorp and R Mukundan, chairman of CII National CSR Committee and MD & CEO of Tata Chemicals.
Kiran Mazumdar Shaw said it's very important to make a very clear roadmap of how the government is going to 2.5 percent funding and where do we need to spend and allocate that funding, "We need to make sure that the private sector plays a very key role in healthcare delivery."
Pawan Goenka said, "In the slowdown, the manufacturing sector is hit more than service or agriculture. Therefore, the focus has to be to bring manufacturing back on its seat, and rightly, the government of India has announced PLI scheme which the manufacturing sector is very eagerly awaiting for."
On the bad bank, Rashesh Shah said, “Bad bank is a very good idea as I do believe that NPA management is very specialised activity and it is not a mainland activity for a bank so having a bad bank where those assets can be parked is very good. The bad bank should be financed by the private sector sources, I don’t think the government should fund it because government has capital allocation problem."
Watch this video for full interaction.