Purchasing power of common man saved India from recession : Moily

Conference on Recession, recovery and resurgence concludes at Nitte

 
Delivering the valedictory address at the two-day national conference on ‘Recession, recovery and resurgence: Responses in the Indian economy’ organised by Justice K S Hegde Institute of Management here on Saturday, he said that one of the core reasons why the growth in India did not slow down, is that private domestic consumption accounts for 57 per cent of GDP in India compared to only 35 per cent in China.

India’s consumer confidence didn’t let the economy down. The 6th Pay Commission contributed to about 1.5 per cent of GDP spread over 5.5 million government employees’ boosted domestic purchasing power.

Debt waiver for farmers improved purchasing power in the agricultural sector. India maintained robust growth in part because it is less exposed to the international economy, he added. Asserting that the RBI is a strict and prudent regulator, Moily said it has never reduced interest rate dramatically as the Federal Reserve in the US did when the real estate boom was at its peak.

Indians today have a savings rate of 38 per cent of national income. This has risen from about 10 per cent two decades ago. This demographic dividend in the form of growing capital stock and technological improvements will help India’s economic resurgence in the years forward, he added.

Nitte University Chancellor N Vinaya Hedge, JKSHIM Academic Council Chairman Dr N K Thingalaya, director Dr M S Mudithaya and others were present.

Inauguration

President and CEO of Dun and Brad Street India, Mumbai Manoj Vaish inaugurated the Conference on Friday. In his address, he asserted that India will recover fast and lead the global recovery in the aftermath scenario of global economic recession.

Delivering the key note address on the occasion member of the Central Planning Commission Dr Narendra Jadhav opined that we were ever and never close to recession and most importantly to the quarterly negative growth. We were never deeper in trouble in any way. India will be great support to resilience of economic growth, he said.