Economic Affairs Secretary Ajay Seth on Monday said that India is path of the recovery. However, he accepted that credit growth is still slow. “During the pandemic period of the past 18 months, it was not just the management of the impact of the pandemic, starting from a health crisis spilling over to the real economy and thereafter some impact onto the financial sector. Managing each of those, but with very strong emphasis on stepping up the reforms, so that the economy can bounce back with a fast growth rate, and also the potential growth rate can be built,” he said while adding that the country is on the path of recovery.

Addressing an event organised by an industrial chamber, he listed less than expected credit off-take as challenge “There are challenges that in the past 18 months because of the lack of private investment demand, the credit off-take has been rather moderate. That's an area where further work is needed,” he said

Focus on inclusive development

The focus of the government is on inclusive development, he said, adding that the government has launched various schemes targeted to support persons, entities with weak economic capacities, not just in the pandemic period, but in the past seven years.

Spelling out some of the schemes the government has launched, he listed PM KISAN Yojna for income support for farmers, PM Awas Yojana for providing safe shelters, providing safe drinking water through Jal Jeevan Mission and electricity for all among others.

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With regard to financial sector reforms, he said, the introduction of Insolvency and Bankruptcy Code has led to resolution of ₹2.4 lakh crore of stressed assets, while FDI and FPI liberalisation has bolstered the confidence of foreign investors in the Indian economy.

On the infrastructure development front, the Secretary said, the two major plans--National Infrastructure Pipeline envisaging ₹111 lakh crore of investment, supplemented by National Monetization Plan to the extent of about ₹6 lakh crore, have been announced. These coupled with a Gatishakti vision of the Prime Minister would lead to seamless movement of goods and services and employment opportunities in the entire country, he said.

“That is one area where we are particularly working on in the finance ministry with other ministries and State governments (as to) how do we implement on the ground these two major plans in the overall vision of Gatishakti,” he said while urging industries to invest in infrastructure projects in big way. The infrastructure spending at the moment is 5-6 per cent of the GDP which should be doubled, he said, adding that it is possible only through a partnership between industry and the government.

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