Economy will bounce back, be optimistic: VP Naidu

December 27, 2019 22:05

The Indian economy would rebound in the future and the current slowdown was cyclical, Vice President M Venkaiah Naidu said at the 102nd annual conference of the Indian Economic Association in Raipur on Friday.

He said the economy was facing challenges due to decline in growth this fiscal, and asked the gathering to be optimistic about a turnaround.

"This conference is being organised in the backdrop of recent economic figures. It is true there are some challenges for the Indian economy...But I want to tell everyone there are ups and downs. But we must be optimistic. We should not be pessimistic," he said.

Naidu claimed the country had faced similar situations earlier in the wake of the East Asian financial crisis and global slowdown, but had bounced back with higher growth rates every time.

Moves like demonetisation, Goods and Services Tax, the Insolvency Code and steps taken against black money would make the economy "more robust and more resilient", the VP said.

Naidu said over 66 lakh new taxpayers were registered under the GST regime since its launch and this indicated the rising trend of formalisation of the economy.

The problem of non-performing assets in the banking sector was being tackled, he added.

The VP said waivers and subsidies provided to the agriculture sector was "unsustainable" in the longer run, adding that "non-farm activities are equally crucial for the growth of the rural economy".

Stressing on the Union government's resolve to double farm income by 2022, Naidu said the rural economy has to be made sustainable and remunerative.

He said agricultural produce must have access to larger markets, storage and supply chains, and in-situ food processing sector must be encouraged in villages.

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