Wednesday October 17, 2018
Home India Modi takes st...

Modi takes stock of global economic turmoil with industry, economists

0
//
25
Republish
Reprint

By NewsGram staff writer

New Delhi: As the global economy looks down the barrel of another impending slowdown, Indian Prime Minister Narendra Modi on Tuesday met union ministers, corporate heads and economists to discuss the turmoil in the global markets. The latest global turbulence has been sparked off by the Chinese economic slowdown and Modi has sought to discuss attendant opportunities for India.

325789-jaitley
Arun Jaitley

Among the ministers that were present at the meeting included Arun Jaitley (Finance) Suresh Prabhu (Railways), Nitin Gadkari (Road transport and Shipping), Nirmala Sitharaman (Commerce), Dharmendra Pradhan (Petroleum) and Piyush Goyal (Coal, Power and Renewable Energy).

RBI Governor Raghuram Rajan, Niti Aayog Vice Chairman Arvind Panagariya, Chief Economic Advisor Arvind Subramanian and Aayog member Bibek Debroy also attended the meeting on ‘Recent Global Events: Opportunities for India’.
Top officials at the meeting included Economic Affairs Secretary Shaktikanta Das, Financial Services Secretary Anjuly Chhib Duggal, Commerce Secretary Rita Teaotia and Industry Secretary Amitabh Kant.

Eight economists, 14 industry representatives and four major financial institutions, including State Bank of India

Chanda Kochar
Chanda Kochar

chief Arundhati Bhattacharya, ICICI Bank’s Chanda Kochar, IDFC’s Rajiv Lall and the CEO of the recently- launched Bandhan Bank Chandra Shekhar Ghosh were also present.
Apart from the heads of industry chambers, top industrialists such as Reliance Industries’ Mukesh Ambani, Aditya Birla Group head Kumar Mangalam Birla, Adani group chairman Gautam Adani, Tata group chief Cyrus Mistry, Wipro boss Azim Premji, Sun Pharma CMD Dilip Sanghvi, ITC’s YC Deveshwar and IL&FS chairman Ravi Parthasarathy also attended.
Public sector enterprises were represented by heavy equipment maker BHEL managing director B Prasada Rao and

BC Tripathi
BC Tripathi

gas utility GAIL chairman BC Tripathi.
Aditya Birla group chief economist Ajit Ranade, JP Morgan chief economist Jahangir Aziz and Morgan Stanley’s emerging markets head Ruchir Sharma were among the economists and market experts who attended the meeting.

(With inputs from IANS)

Click here for reuse options!
Copyright 2015 NewsGram

Next Story

The Answer to The Impending Questions On Demonetization Are Here

While it did broaden the country’s tax base, it was a nightmare for the immense, cash-dependent informal economy.

0
crop loan
Indian Currency. Pixabay

Nearly all of the currency removed from circulation in a surprise 2016 attempt to root out illegal hoards of cash came back into the financial system, Resever Bank of India  has announced, indicating the move did little to slow the underground economy.

Prime Minister of India, Narendra Modi’s currency decree, which was designed to destroy the value of billions of dollars in untaxed cash stockpiles, caused an economic slowdown and months of financial chaos for tens of millions of people or demonetization.

Modi announced in a November 2016 TV address that all 500-rupee and 1,000-rupee notes, then worth about $7.50 and $15, would be withdrawn immediately from circulation. The banned notes could be deposited into bank accounts but the government also said it would investigate deposits over 250,000 rupees, or about $3,700. The government eventually released new currency notes worth 500 and 2,000 rupees.

 

demonetization
An activist of Congress party hold the banned 500 and 1000 rupee notes.

 

In theory, the decree meant corrupt politicians and businesspeople would suddenly find themselves sitting on billions of dollars in worthless currency, known here as “black money.”

“A few people are spreading corruption for their own benefit,” Modi said in the surprise nighttime speech announcement of the order. “There is a time when you realize that you have to bring some change in society, and this is our time.”

But even as the decree caused turmoil for those in India who have always depended on cash — the poor and middle class, and millions of small traders — the rich found ways around the currency switch. In the months after the decree, businesspeople said that even large amounts of banned currency notes could be traded on the black market, though middlemen charged heavy fees.

demonetization
Prime Minister Narendra Modi along with mayor, flickr

The reserve bank of India report said in its Wednesday report that 99.3 percent of the $217 billion in notes withdrawn from circulation had come back into the economy. Some officials had originally predicted that number could be as low as 60 percent.

Also Read: Diverse Gathering To Be Addressed This World BioFuel Day: PM Narendra Modi

“Frankly, I think demonetization was a mistake,” said Gurcharan Das, a writer and the former head of Proctor & Gamble in India. He said that while it did broaden the country’s tax base, it was a nightmare for the immense, cash-dependent informal economy.

“You can’t overnight change that in a country which is poor and illiterate. Therefore, for me it’s not only an economic failure but a moral failure as well,” Das said. (VOA)