9 positive things KV Kamath said about the economy

KV Kamath

Veteran banker KV Kamath has held out hope for the economy amid a throng of voices that have predicted the worst in terms of a severe contraction in growth.

Here are nine positive things he said about the economy in an exclusive interview with Network18.

- Does not see the Indian economy having a ‘hard landing’.

- Kamath does not think the contraction in the Indian economy will be to the order that people are talking about.

- He sees the domestic economy expanding, “which means that domestic companies will have a large space to operate as India is a very large market as we head towards the $5 trillion economy.”

- According to him, India will grow at double-digits for a very long period of time. By this he means upwards of a minimum 10-15 years.

- Given the government’s stimulus measures and Reserve Bank’s interest rate cuts, he expects growth to return. But warns that the momentum of growth needs to be maintained.

- “The economy will experience a little bit of pain but will come out of it – the country is going to see shallow ‘U’ shaped recovery,” he stated.

- He called on banks to work with the government and RBI to ensure that the low interest rate climate endures.

- The Centre could consider a moratorium of longer nature, maybe a one-time moratorium, he said.

- On fiscal deficit, he said, “In this new normal, we need to put concepts like deficit on hold.”

For more stories on the interview click here