Sanjiv Mehta said the priority of the government should be to save lives and then save livelihoods
Sanjiv Mehta, Chairman and Managing Director, HUL on July 10 warned that a slowdown in demand could lead to a financial crisis, adding, the 'risk of recession is real'.
He was speaking at the AGM of IMC.
Asserting that the COVID-19 outbreak is a societal crisis, Mehta said the priority of the government should be to save lives and then save livelihoods.
He said the government needs to show resolve in reviving the economy, which was battered as a result of the coronavirus-driven lockdown.
"A slowdown in demand could lead to a financial crisis, the impact of which will vary from sector to sector," Mehta said.
He explained that the path of the recovery and growth of the Indian economy will depend upon the trajectory of the novel virus, as well as various fiscal measures taken by the government.
To soften the blow of the coronavirus lockdown on the vulnerable sections of the society, the government had rolled out a slew of schemes, including long-awaited reforms in the agriculture sector, he said.Realising that it is not easy to have a large demand-led stimulus, Mehta said that the reforms will have a trickle-down effect on demand.