<p>In a hard-hitting reply to critics who blame the government for not adequately addressing the demand side issues leading to consumption slowdown in Covid-battered economy, Finance Minister Nirmala Sitharaman Wednesday said the demand side is completely able to manifest itself and that there are no water tight compartments in the real economy.</p>.<p>It is only textbook economics that presents a clear cut division in demand and supply. In real economy both overlap, she said</p>.<p>"The resilience of the Indian economy is highlighted by the fact that it has recovered sharply after the Covid-19 pandemic. Despite the pandemic, India is still one of the fastest growing economies in the world. New age industries will bring demand to conventional products," she said at a CII's Global Economic Policy Summit.</p>.<p>"If the ship and chip shortage had not been there, growth would have been even higher," she said.</p>.<p>Critics have been saying since the first Covid wave, the economic recovery is losing sheen due to lack of demand for goods or consumption.</p>.<p><strong>Read | <a href="https://www.deccanherald.com/business/business-news/fm-asks-industry-to-start-taking-risks-invest-in-capacity-creation-1051755.html" target="_blank">FM Sitharaman asks industries to start taking risks</a></strong></p>.<p>The spike in consumer spending suggests not just pent up demand, but that life is getting restored after a crisis of this scale, Sitharaman said, adding the labour market also indicates the presence of semi-skilled and high-skilled labour who value their skill sets and are in a position to bargain while looking for employment.</p>.<p>Sharing her views on public sector banks, she said they have been able to bring down their net bad loans to 2.9% for the quarter ending September 2021.</p>.<p>She said drives taken up by scheduled commercial banks resulted in significant increase in credit growth from 5.1% in September 2020 to 6.8% in September 2021.</p>.<p>Speaking on climate change and clean fuel, she said "there is a need to focus on natural gas as a transitional fuel towards use of green energy," she said adding despite government's commitment towards to the use of natural gas as a transitional fuel, high global crude oil prices present a challenge for India to import more natural gas".</p>.<p>She urged industry to increase investments in green fuels in order to help India meet its COP26 goals.</p>.<p><strong>Watch latest videos by DH here:</strong></p>
<p>In a hard-hitting reply to critics who blame the government for not adequately addressing the demand side issues leading to consumption slowdown in Covid-battered economy, Finance Minister Nirmala Sitharaman Wednesday said the demand side is completely able to manifest itself and that there are no water tight compartments in the real economy.</p>.<p>It is only textbook economics that presents a clear cut division in demand and supply. In real economy both overlap, she said</p>.<p>"The resilience of the Indian economy is highlighted by the fact that it has recovered sharply after the Covid-19 pandemic. Despite the pandemic, India is still one of the fastest growing economies in the world. New age industries will bring demand to conventional products," she said at a CII's Global Economic Policy Summit.</p>.<p>"If the ship and chip shortage had not been there, growth would have been even higher," she said.</p>.<p>Critics have been saying since the first Covid wave, the economic recovery is losing sheen due to lack of demand for goods or consumption.</p>.<p><strong>Read | <a href="https://www.deccanherald.com/business/business-news/fm-asks-industry-to-start-taking-risks-invest-in-capacity-creation-1051755.html" target="_blank">FM Sitharaman asks industries to start taking risks</a></strong></p>.<p>The spike in consumer spending suggests not just pent up demand, but that life is getting restored after a crisis of this scale, Sitharaman said, adding the labour market also indicates the presence of semi-skilled and high-skilled labour who value their skill sets and are in a position to bargain while looking for employment.</p>.<p>Sharing her views on public sector banks, she said they have been able to bring down their net bad loans to 2.9% for the quarter ending September 2021.</p>.<p>She said drives taken up by scheduled commercial banks resulted in significant increase in credit growth from 5.1% in September 2020 to 6.8% in September 2021.</p>.<p>Speaking on climate change and clean fuel, she said "there is a need to focus on natural gas as a transitional fuel towards use of green energy," she said adding despite government's commitment towards to the use of natural gas as a transitional fuel, high global crude oil prices present a challenge for India to import more natural gas".</p>.<p>She urged industry to increase investments in green fuels in order to help India meet its COP26 goals.</p>.<p><strong>Watch latest videos by DH here:</strong></p>
