'Country's economy facing bad situation, not in crisis'

The country's economy is going through a difficult situation but not in a crisis, Niti Aayog distinguished fellow Ramgopal Agarwala said here on Saturday.

The reforms like demonetisation, Goods and Services Tax (GST) and the Insolvency and Bankruptcy Code (IBC) were required but hastily implemented, Agarwala said in his personal view.

Speaking at the Bharat Chamber of Commerce here, Agarwala said, "In my personal opinion, the country is in a difficult situation but not in a crisis. The reforms implemented were necessary but hastily implemented."

He said demonetisation was actually 'note badli' (change in currency notes), not 'note bandi' (note ban).

"Black money was running sore on the economy. But more thinking had to go in for implementing demonetisation," Agarwala said.

Talking about GST, he said, "In my personal view, it was a good step but not enough preparation was done while implementing it. The same is true for IBC."

Agarwala said that these reforms could have had some kind of effects on the economic slowdown.

Speaking on the economic growth, he said, "Personally I feel, inclusiveness is the most important factor for achieving good growth. All castes and communities have to be included while ensuring gender equality."

For prosperity, he said the country's economy needs to grow at least by eight per cent annually for the next 15 years.

Agarwala stated that the private sector needs to make investments for which the monetary policy will have to be eased.

Regarding the Centre's target of achieving USD five trillion economy by 2024-25, he said, "It is desirable. But income opportunities have to be created for the aspirational middle class."

The revival of housing sector could lead to a high level of growth, he added.