Andhra Pradesh

‘Indian economy facing unprecedented recession’

The Centre must encourage the retail sector to provide more jobs to youth in the backdrop of an unprecedented financial crisis brought about by the second wave of COVID-19, former Vice-Chancellor of Dr. B.R. Ambedkar University and economist Hanumanthu Lajipathirai said on Sunday.

“Retail companies should focus on operational improvement instead of going in for expansion. India will be able to overcome the unemployment crisis if the retail sector is encouraged to provide more jobs to youth in Tier-II and Tier-III cities and newly-developing cities like Srikakulam and Vizianagaram,” Mr. Lajipathirai told The Hindu.

“Banks can extend a helping hand to such companies to meet their operational and working capital requirements. The banks can also be assured of repayment of their loans as the retail retail sector would continue to do decent business in the current bleak scenario,” Mr. Lajipathirai said.

The retail sector was contributing 22% of the country’s GDP, which might record a growth of 5.5% in the 2021-22 fiscal year, he said.

“The Indian economy has been facing an unprecedented recession with the impact of the second wave. Such a situation has never emerged in the last 70 years. The Union government can direct the Reserve Bank of India to adopt a liberal credit policy to instill confidence in medium and small-scale industries which provide more jobs in rural and semi-urban areas.

The packages announced by the Union government should be implemented earnestly at the ground-level. State governments should be taken into confidence to achieve the goals of the Central government,” said Mr. Lajipathirai, who was earlier associated with the Indian Institute of Foreign Trade, New Delhi. He also sought a helping hand for agriculture, horticulture and food processing industries for quick revival of the economy in rural areas.


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Printable version | Jun 24, 2021 12:39:45 PM | https://www.thehindu.com/news/national/andhra-pradesh/indian-economy-facing-unprecedented-recession/article34468153.ece

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