NEW DELHI: Niti Aayog vice-chairman Rajiv Kumar on Monday blamed the previous Reserve Bank of India (RBI) governor Raghuram Rajan for the slowdown in country's economic system in the days that adopted demonetisation.
Rajan's policies on non-performing assets (NPAs) resulted in the slowdown in the economic system and no longer the federal government's choice to prohibit 500 and 1000 rupee notes, the Niti Aayog vice-chairman mentioned in an interview to information agency ANI .
"The slowing of growth rate in the post-demonetisation period was not due to the decision to ban notes, but because there was a declining trend in the economy. Starting from last quarter of 2015-16, the growth rate had come down for six successive quarters," he mentioned.
Elaborating additional on the causes for this decline, Rajiv Kumar lay the blame squarely on Rajan, suggesting that his stressed out account policies resulted in a surge in NPAs in the banking sector.
He mentioned the NPAs rose to Rs 10.five lakh crore by means of mid-2017 from Rs four lakh crore when the present govt took workplace due to Rajan's revised mechanism of figuring out NPAs and thereby banks stopped giving credit score to the business, thus slowing down the economic system.
"The growth of credit came down to 1 or 2 per cent or even negative in some quarters," Kumar mentioned, whilst including that the federal government is compensating for this by means of ramping up expenditure.
Notably, India's gross domestic product (GDP) enlargement price came at 6.1 in line with cent in the fourth quarter of the fiscal year 2016-17 -- the three month-period that adopted the notice ban. In the next quarter (Q1 of fiscal year 2017-18), the expansion price slumped to a three-year low of 5.7 in line with cent.
Rajan's policies on non-performing assets (NPAs) resulted in the slowdown in the economic system and no longer the federal government's choice to prohibit 500 and 1000 rupee notes, the Niti Aayog vice-chairman mentioned in an interview to information agency ANI .
"The slowing of growth rate in the post-demonetisation period was not due to the decision to ban notes, but because there was a declining trend in the economy. Starting from last quarter of 2015-16, the growth rate had come down for six successive quarters," he mentioned.
#WATCH:Niti Aayog Vice-Chairman Rajiv Kumar on allegations that #demonetisation bogged down enlargement says 'This is a… https://t.co/CKKjfHjmhe
— ANI (@ANI) 1535962807000Elaborating additional on the causes for this decline, Rajiv Kumar lay the blame squarely on Rajan, suggesting that his stressed out account policies resulted in a surge in NPAs in the banking sector.
He mentioned the NPAs rose to Rs 10.five lakh crore by means of mid-2017 from Rs four lakh crore when the present govt took workplace due to Rajan's revised mechanism of figuring out NPAs and thereby banks stopped giving credit score to the business, thus slowing down the economic system.
#WATCH:Niti Aayog Vice-Chairman Rajiv Kumar says, 'Growth was once declining due to former RBI Governor Raghuram Rajan's… https://t.co/Xdz2snwDM1
— ANI (@ANI) 1535962278000"The growth of credit came down to 1 or 2 per cent or even negative in some quarters," Kumar mentioned, whilst including that the federal government is compensating for this by means of ramping up expenditure.
Notably, India's gross domestic product (GDP) enlargement price came at 6.1 in line with cent in the fourth quarter of the fiscal year 2016-17 -- the three month-period that adopted the notice ban. In the next quarter (Q1 of fiscal year 2017-18), the expansion price slumped to a three-year low of 5.7 in line with cent.
Economy slowed down due to Raghuram Rajan's policies, not demonetisation: Niti Aayog VC
![Economy slowed down due to Raghuram Rajan's policies, not demonetisation: Niti Aayog VC]()
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September 03, 2018
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