Boost domestic demand, says Aggarwal
The markets are expected to stabilize as fundamentals of Indian economy are strong enough to withstand the external shocks on the back of robust economic reforms undertaken by the Government in recent years, assured Dr D K Aggarwal, President, PHD Chamber of Commerce and Industry.
The volatility in the rupee and stock markets will be short-lived and is due to the spread of Coronavirus disease (COVID-19) in many countries.
The rupee has moved above US$74 in the exchange rate marekt. But “we are hopeful that rupee will strengthen and stabilize,” he added.
India’s economic resilience has strengthened during the recent times on account of factors such as improving FDI inflows, forex reserves and several measures undertaken to boost investment sentiments in the economy, he pointed out.
India attracted FDI inflows of more than US$51 billion during April to December 2019-20.
Forex reserves have improved significantly to about US$481 billion as on 28 February 2020, up from around US$399 billion on 22 February 2019.
There are lot of positives for the markets during the last few months such as significant cut in corporate tax rates, large scale investment plans for the infrastructure sector, higher allocations for agriculture and rural development.
He also highlighted the abolition of DDT, rationalization of tax structure, among others.
These announcements will have a strong positive impact on the markets in the coming times, said Dr Aggarwal.
“At this juncture, we need to boost our domestic consumption demand and domestic capacities to mitigate the likely impact of Coronavirus on global trade,” said Dr Aggarwal.
“Going ahead, it would be crucial to strengthen the economy from the grassroots and enhance our competitiveness to increase our presence in global exports particularly increase in our volumes towards our top export destinations,” said Dr Aggarwal said in a press release on 9 Mar 2020. fiinews.com
