Indian economy currently facing challenges, says Sitharaman

Nirmala Sitharaman, economic slowdown
The growth drivers have obtained largest support from agriculture followed by construction and manufacturing, the Union Finance Ministry's Monthly Economic Review said. Photo: PTI

Finance Minister Nirmala Sitharaman on Sunday (November 10) unveiled a book on global finance, said the book suggests a solution for challenges that the world and Indian economy is currently facing.

Launching the book titled ‘The Rise of Finance: Causes, Consequences and Cure’, she said it will help “understand the current economic situation facing both the world and Indian economy”.

“As a textbook, I am sure it will become very popular and more importantly, this will be a book that is very relevant to those of us, sitting on the policymaking table. Secondly, its relevance and the timing of the launch of the book in India. We are currently facing a challenging time,” the minister said.

The book is co-authored by V Anantha Nageswaran and Gulzar Natarajan.

Nageswaran is dean of IFMR Graduate School of Business at Krea University. Natarajan is senior managing director at Global Innovation Fund.

She said it has come at a time when questions are being asked about the nature of the slowdown, which is affecting the global economy and bogging it down and indeed questioning if India is actually in a slowdown.

“The book examines the rise of financialisation globally. I really commend the prescriptive and descriptive narrative that supports the topic of financialisation and the solutions that have been prescribed for situations that the world and Indian economy is currently facing,” Sitharaman said.

India’s economic growth slumped to an over six-year low of 5% in the first quarter ended June this fiscal due to slower consumer demand and private investment amid deteriorating global environment.

This has prompted many global agencies to cut India’s GDP growth by various degrees for 2019-20.

The RBI, in October monetary policy review, had cut sharply its economic growth projection for the country for this fiscal to 6.1% from 6.9% earlier, expressing hope it will recover in the second half of 2019-20.

The government has recently announced a slew of measures, including cut in corporate tax rate, capital infusion into public sector banks, setting up a ₹25,000 crore fund to boost realty sector, among others, to boost the economy.