Exclusive | KV Kamath Says Economic Contraction Not As Bad As Estimated, Rebound Faster Than Anticipated

The contraction in the economy may not be much as is being anticipated by various economists, said veteran banker and former head of Asian Development Bank KV Kamath. "The landing will not be as hard as anticipated. Rebound is faster than what most of us thought would be. The economy may see a shallow U-shaped recovery," he told Network18 Editor in Chief Rahul Joshi in an exclusive interview.

Measures taken by the government have worked well for the economy, he added, and also commended the Aatmirbharat Bharat scheme.

"Will see a little bit of pain before we come out of it," Kamath said about economic ercovery.

Agriculture has come back very quickly and rural India has been less affected by the challenges, he noted, adding, he is most optimistic about farm employment.

Kamath also highlighted that top Indian companies have never been as deleveraged as they are today.

Kamath was the Founding-President of the New Development Bank and Chief Executive Officer (CEO) of ICICI Bank for 13 years until 2009.

According to a projection by The International Monetary Fund (IMF), India’s economy will contract 4.5 percent in FY21.

Kamath also fiscal deficit will have to be played around with for the government to do what it has to do to push economic growth.

Kamath also said he is "absolutely not looking at any government role now', dismissing speculation that he will take up a position in the Union Cabinet.

For more stories on the interview click here