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No big bang stimulus coming from Narendra Modi government: Experts discuss

Updated : August 22, 2019 03:57 PM IST

Chief economic advisor K Subramanian called for a "mindset change" in the private sector by desisting from the tendency to grab profit and socialise losses and also seek sops in times of stress.

He also said it will be only investment and not consumption that will help the economy grow, explaining that the latter boasts an economy with a higher per capita income of say $10,000 or more.

The comments come amidst increasing criticism both from the corporate world as well as by analysts and economists outside the government about the issues plaguing the economy, and many a sector like the auto sending SoSs for help.

Comparing the private sector, which benefited the most from the 1991 reforms to a grown-up man, he said, "This 30- year-old man and must start to stand on his own feet. This adult cannot keep asking his father for help and live with the idea of personalising profit and socialising losses."

"We need to move on; we're a market economy, where assets do get reallocated when someone doesn't manage it well," he told an event organised by Jana Small Finance Bank this evening.

Meanwhile, former economic affairs secretary SC Garg said a better way of the stimulus was to reduce interest rates and that recent hike in bond rates would in fact hurt the industry much more.

In an attempt to extrapolate the above statements, CNBC-TV18 spoke with A Prasanna of I-Sec PD and Indranil Pan, chief economist, IDFC First Bank.
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