A fiscal stimulus, makeover for public sector banks and land reforms to make acquisition easier, these were the key recommendations made by top corporate leaders and economists when they met Prime Minister Narendra Modi just 10 days ago.
The closed-door meeting with the Prime Minister lasted for about four hours and they held a roundtable with the NITI Aayog members that went on for more than 10 hours and the who's who of India Inc were in attendance. Chairman of Tata Sons N Chandrasekaran, Anil Agarwal of Vedanta, ITC's Sanjiv Puri, KKR India's Sanjay Nayar, Paytm's Vijay Shekhar Sharma and top economists like Neelkanth Mishra, Sajjid Chinoy, Soumya Kanti Ghosh among others.
Most economic indicators are pointing to a slowdown in consumption. The auto industry has not been able to clock growth since January and the contraction has accelerated to 17 percent in April and crossed 20 percent in the month of May.
It’s a similar picture for two-wheeler sales growth in January this year as it contracted by over 5 percent in March and April. The Index of Industrial Production has also been sluggish since the start of this year.
Amid this backdrop, what can the government do to pump prime the economy and boost consumption? Is a fiscal stimulus the solution? To answer this, CNBC-TV18's Shereen Bhan is joined by Ashok Wadhwa, group chief executive officer of Ambit and R Gopalan, former finance secretary.