Each year, policy makers, corporate leaders and citizens are brought together on CNBC-TV18's Public Affairs Forum of India (PAFI) to brainstorm over issues that matter to the country. Today, as we grapple with an economic contraction and uncertain environment, it is important to discuss the roadmap for recovery and growth.
To address issues of trust and equity that often hold back collaboration of the government and the private sector, to chart out a roadmap for future action, to ensure the health of the government and corporate India's balance sheets, Shereen Bhan spoke to Kotak Mahindra Bank CEO Uday Kotak and Vice Chairman of NITI Aayog Rajiv Kumar.
Talking about recovery Kotak said, "There are some important aspects we need to keep in mind, one is compared to April and May the situation in October in terms of the real economy, especially in tradable and physical areas, have certainly got much better."
"Important factors that are working for us as a country are -- extremely strong external account including the current account position, which is giving us much less fragility on the global side. Second huge amount of surplus liquidity around the world is leading to significant investments flows. Third - in India we had extra ordinary accommodative monetary policy with clear guidance and unambiguous way forward. Fourth is an expensive fiscal policy including the packages combined with the fact that revenues have been lower and finally the world has changed the way it is moving away from concentration with dominant countries in a new geo-political framework."
Speaking about the next set of stimulus measures, Kumar said, "We in NITI have been talking about the fact that this stimulus should be focused on infrastructure. Infrastructure which has short gestation periods, where you can get things off the ground and money out of the door as quickly as you can because that has its own very strong multiplier effects."
"At the moment we are looking for stimulus which can sustain growth and give legs to recovery that we are seeing already and I am hoping that the ministry of finance will be focusing in the same direction."