Consumption likely to show an uptick in two-three months: Sunil Munjal

Our Bureau Kolkata | Updated on March 08, 2020 Published on March 08, 2020

Sunil Kant Munjal, Chairman, Hero Enterprise

Full recovery will take four-six quarters, says the Chairman, Hero Enterprise

Sunil Kant Munjal, Chairman, Hero Enterprise, on Saturday said that there is likely to be “some uptick” in consumption in the next two-to-three months, but full recovery of the economy is expected to happen in the next four-to-six quarters. However, coronavirus (Covid-19) may be “a joker in the pack”.

According to him, barring some marginal impact due to hail and rain in the past couple of days, India is likely to witness a good harvest this year. This will help boost consumption and the demand is likely to grow.

The regulatory environment in the country has also been improving and both regulators and government are stepping in to effectively handle issues in the financial sector. Once the financial system is “cleaned up” consumption will automatically improve.

“The financial system serves as the backbone for any high growth in the economy. We (government and regulators) have been cleaning our system, non-performing assets are being dealt with promptly……while we are going through the pain of transition, but at the end a lot of benefit will come to India,” he told newspersons on the sidelines of the launch of his book - The Making of Hero, here on Saturday.

When asked about the possible impact of the outbreak of Covid-19 on Indian economy, he said, while there was some “concern” but he was not too “worried”. Though the negative impact of the virus should start receding by month-end, however, it needs to be seen how it impacts, he added.

IBC to become a smoothly functioning system

Hailing IBC (Insolvency and Bankruptcy Code) as an effective mechanism to address the NPA issues plaguing the Indian banking system, he said, “A lot of questions on IBC were raised but the way it is functioning, in the next two-to-three years, it will be a smoothly functioning system.”

Though questions have been raised about the efficacy of IBC following prolonged delays with most cases landing up in various courts including the Supreme Court, he said, these should be ironed out going forward.

The country has also made significant strides in the last ten years by rationalizing a large number of laws and more such efforts are in the offing, he pointed out.

On RBI’s intervention in YES Bank and SBI's plan to pick up a 49 per cent stake in the beleaguered private lender, he said, “It sends a very mixed signal. It first shakes up the system on one hand but it also proves that the regulatory bodies are awake.”

When asked about the possibility of GST rationalisation, he said that though the initial concept of GST was simple, but owing to a “lot of political compromises”, it has turned out to be “complex” in its present form. However, the complications around the latest tax structure should be addressed soon and GST will eventually evolve into a simpler form in the days to come.

Published on March 08, 2020

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.