Despite many challenges, Indian economy has many positives: CII

The Economic Survey has rightly pointed out many positives in the current Indian situation despite challenges posed by the global economic slowdown. It is encouraging macro-economic indicators such as low inflation, increasing public investment and fiscal consolidation said, Director General CII, Chandrajit Banerjee.

In our various interactions with the Government and the RBI, CII highlighted the need for special attention to the twin balance sheet problem of the impaired financial position of Public Sector Banks and some corporate houses.

A significant section of the survey is dedicated to this aspect and the 4Rs: recognition, recapitalization, resolution and reform have been stated as the strategy to deal with the problem, which has been holding up growth and especially private sector investments.

In this context it is imperative to set up the National Asset Management Company or the 'Bad Bank', which would be able to wipe the toxic assets off the books of banks so that normal lending can start, Banerjee added.