NITI Aayog Vice Chairman Rajiv Kumar told India hasn't faced such a worse liquidity crisis in the past 70 years. He didn't hesitate to say the whole Financial Sector is getting affected and nobody is trusting anybody else.
Rajiv Kumar maintained Union Government need to recognize the crisis in the Financial Sector and do everything possible to clear the apprehensions of the private sector. 'Liquidity is turning into insolvency. We have to stop it!,' he told.
The Top Economist explains the dire situation: 'Nobody is trusting anybody else. Within the private sector, Nobody wants to lend money to anybody else. Govt has to do two things...Clearing the apprehensions in the private sector and implementing some not so ordinary decisions'.
India's GDP Growth in the last quarter of financial year 2018-19 ending with March 31st stood at 6.8 percent. GDP Growth in the first quarter of the current financial year might drop down to 5.7 percent because of lack of investments and poor performance of the service sector.