Expect Budget to tackle farm sector issues: RBI director

Satish Marathe, RBI director, at The Hindu BusinessLine ’s Countdown to Union Budget 2019.

Satish Marathe, RBI director, at The Hindu BusinessLine ’s Countdown to Union Budget 2019.   | Photo Credit: PAUL NORONHA

Calls for promotion of animal husbandry, fisheries sectors

The Union Budget to be presented on July 5 is likely to address issues of the agricultural sector, apart from manufacturing and banking, Satish Marathe, director of the Central Board of the Reserve Bank of India, has said.

Mr. Marathe was speaking at ‘Countdown to the Union Budget 2019,’ an event organised by The Hindu BusinessLine on Friday at the National Stock Exchange.

According to Mr. Marathe, there has been distress in the agricultural sector because farmers do not want to continue working in the sector. He said animal husbandry and fisheries need to be promoted so that they can generate income in the farm sector.

“Agriculture, manufacturing and banking & finance are the three main sectors that have influenced the economic situation of the nation in the past 15 years. I hope the government has formed a Budget keeping these sectors in mind,” Mr. Marathe said.

G. Chandrashekhar, policy commentator and agribusiness specialist, also spoke at the event. “We have failed to create a demand and commensurate increase in our production. We have million tons of rice and grain stocks in the Food Corporation of India and on the other hand, we talk about more than 250 million people living below the poverty line,” he said.

Rahul Prithiani, director, CRISIL Research, talked about the need for consolidation among public sector banks.

“If you look at the mergers in the last few years, it is clear that the structure that is being looked at is five to six large banks… the roadmap is clear to create five strong banks, capitalise them and look forward to them lending,” Mr. Prithiani said.

KVS Manian, president, institutional and investment banking, at Kotak Mahindra Bank said there needs to be a roadmap on how the government intends to deal with the banking sector, and commercial and governance issues. “It will help the sector in general. Second, some of the financial infrastructure issues, IBC issues, commitment that some of these things will be encouraged [are needed],” he said.

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Printable version | Feb 28, 2020 3:44:14 PM |

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