Veteran banker and former head of Asian Development Bank KV Kamath shared that the contraction in the economy may not be much as is being anticipated by various economists.
“The landing will not be as hard as anticipated. Rebound is faster than what most of us thought would be. The economy may see a shallow U-shaped recovery,” he shared.
The veteran banker commended the Aatmirbharat Bharat scheme and approved of the measures taken by the government which he believes to have worked well for the economy.
Mr Kamath was most optimistic about farm employment and said that agriculture has come back very quickly and rural India has been less affected by the challenges.
He also underlined that top Indian companies have never been as deleveraged as they are today.
KV Kamath was the Founding-President of the New Development Bank and Chief Executive Officer (CEO) of ICICI Bank for 13 years until 2009.
While commenting on the speculation that he will take up a position in the Union Cabinet, Mr Kamath dismissed all claims, saying that he is “absolutely not looking at any government role now’.
He was of the opinion that fiscal deficit will have to be played around with for the government to do what it has to do to push economic growth.
According to a projection by The International Monetary Fund (IMF), India’s economy will contract 4.5 percent in FY21.