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Last Updated : Sep 22, 2020 10:10 AM IST | Source: Moneycontrol.com

India needs to be aggressive with spending: HUL Chairman Sanjiv Mehta

"There is a curve of cost of doing and the cost of not doing," HUL Chairman Sanjiv Mehta said

HUL Chairman and MD Sanjiv Mehta
HUL Chairman and MD Sanjiv Mehta
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Hindustan Unilever (HUL) Chairman Sanjiv Mehta said that, due to the current economic scenario, India would have to be "aggressive" with spending before it's too late.

Mehta also said interest rates need to be cut after signs of urban distress due to the economic fallout of the COVID-19 pandemic, according to a report by The Economic Times.

"There is a curve of cost of doing and the cost of not doing," Mehta said, as quoted by the paper.


Mehta made the comments during a web interaction with Federation of Indian Chambers of Commerce & Industry (FICCI) President Sangita Reddy.

"When the cost of not doing exceeds the cost of doing, then it would be a very unfortunate situation for the country. We should not let that happen - we should definitely take the risk of being aggressive with spending. Because, if we don't do it now, then it might become a bit too late," Mehta said.

The government needs to raise spending even with the risk of inflation, he added.

"There is a risk of inflation, but the bigger risk is the economy going into a tailspin. So there should be an aggressiveness with which we reduce the interest rates, clearly with the risk that there could be more inflation coming," Mehta said.
The Indian economy has been hammered by the COVID-19 outbreak, with the gross domestic product (GDP) contracting nearly 24 percent in the April-June quarter.

Nearly 6 million white collar professional jobs were lost between May and August, according to data from the Centre for Monitoring Indian Economy (CMIE).
First Published on Sep 22, 2020 10:10 am