NEW DELHI: The Indian economy is set for a V-shaped recovery, and things are likely to pick up September onwards, particularly because of the proactive steps taken by the Indian government to manage the crisis posed by the outbreak of Covid-19, and the ‘resilient’ nature of India and its people, AK Sharma, Secretary, ministry it micro, small and medium enterprises said on Tuesday.
To be atma-nirbhar is not to be protectionist, and the government’s idea of launching the self-reliance initiative is to add to the country’s strengths, Sharma added.
“Inspite of all the challenges and the perception and all the issues, the government has moved very decisively to see that credit flows to sector where it is needed, particularly MSMEs,” Sharma said at the US-India Strategic Partnership Forum.
“RBI has played a very confidence boosting actor. RBI has responded very proactively, it’s been with the economy and its sectors,” he said.
Sharma said that he was hopeful that the government will find ways to come out of economic downturn.
“Many of economists have spoken of a V shaped recovery. Perhaps September onwards we will see upwards trend,” Sharma said.
Sharma said that consumption will be driven by the Indian market itself.
“We don’t have to worry about the rest of the world and breakage of global supply chains if we produce, if there is a lot of consumption going to happen here. So demand side is going to be taken care of very soon,” he said.
Sharma added that a good monsoon this year is also going to work for the country’s advantage.
Sharma said that the pandemic has necessitated rethinking of global politics and international relations. The atma nirbhar bharat abhiyaan launched by Prime Minister Narendra Modi is meant for encouraging domestic production and value-addition, he said.
“Basically what atma nirbhar bharat calls for, is to add to our own stregnth and if something need to be imported we will import, if something needs to be exported, we will export as well,” he said.
He said that the government is encouraging companies to produce well, zero effect, zero defect goods which are acceptable in the world market as well, through the atma nirbhar bharat package, he added.
“I would like to allay those fears, those misconceptions. We should try to be self reliant, add value in what we are producing,” Sharma said.