NEW DELHI: Market veteran Raamdeo Agrawal said the biggest defaulter in India is none other than the government itself. He said half of the problems the domestic economy is facing will get resolved, once the government starts clearing dues on time.
“Even if the government starts paying at least 30-day bill in 30 days, one-third of the problems will get solved”, Raamdeo said.
Speaking at the Hero MindMine Summit 2019, co-founder at Motilal Oswal Financial Services advised policymakers to develop an ‘Indian’ growth model. Let’s stop talking about a Chinese growth model, he said.
The reality of the economy is far different from the perception at the policy-making level, Agrawal said.
“Never has been in my 40-year experience in the market, did I see wealth destruction like the one we are seeing now,” Agrawal said.
Agrawal said that the government has not been fair to investors.
“India has a tradition of
Atithi Devo Bhava. But when it comes to overseas investors, the same principle is not applied to them,” Agrawal said. He urged the government to create the right conditions for FPIs to have the comfort of investing.
India is the most attractive market for them, and they will come, all they need is the right atmosphere, he added.
“The problem businesses are facing on the ground is real whether in Delhi or Mumbai,” he said while blaming the IL&FS crisis as the key trigger for the ongoing tough situation.
Credit flow is the biggest problem he said, suggesting that the government can solve most of these underlying problems.
Agrawal said there is a liquidity crisis in the economy and today it has become the worst.
“The best thing the PM has done is to set a goal for itself, now we need to find our own model to reach that goal,” he said.
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