SME Times News Bureau | 06 Jan, 2020
Analyst firm Brickwork Ratings on Monday said the economy
is on the mend and further measures are needed to reverse the economic
slowdown.
While slowdown is a global phenomenon, India has remained insulated from such
events in the past due to its burgeoning consumer demand on the back of its
demographic dividend, it said. The Indian economy was expected to grow at a
much faster pace encouraging the nation to set a goal of a $5 trillion economy
in the next five years thereby targeting a CAGR of 15 per cent.
However, the Indian economy is suddenly witnessing a sharp deceleration marked
by low demand and production. The government has undertaken a series of steps
in the recent past to reverse the economic downturn. The document analyses the
trends in key parameters of the economy, the initiatives hitherto taken and
gives the agency's opinion on what more is required.
The major issues faced by banks were stress assets in the books, liquidity and
cost of funds was a terrible pain to NBFCs and MSMEs. The real estate sector
post-demonetisation also faced a lot of stress while the bond market saw a
major downside due to lack of demand from investors after the slew of defaults
started last year.
The government, Reserve Bank of India (RBI), Securities Exchange Board of India
(SEBI) and other regulators have taken several measures to boost consumption
and investment activities and to alleviate stress, in a bid to revive the
declining Indian economy, the agency said.