“Continuous Stimulus” Needs To Be Given, As It May Take Years Before “Supply” Is Back To Normal: Mahendra Swaroop

When times are uncertain, and people are unsure there lays a little bit of anxiety and fear, eradicating that and working towards rebuilding our nation is precisely what everyone hopes for and is working towards. However, as in every democratic nation, there are few voices, pointing out prevent flaws and putting forth their opinion of what needs to be done. Nevertheless, every one lies in awe and hope of the government helping the country increase demand and give more money in the hands of the citizens.

In the Atmanirbhar series: Big Bang Economic Reforms, by BW Businessworld NewX Primus Partners, several people of the likes of: Hemant Kanoria, Chairman, SRIE; Rajan S Mathews, DG, COAI; Uddhav Poddar, MD, Bhumika Group; Mahendra Swaroop, MD and Partner, Avigo Capital Partners; Mansi Gupta, Founder and CEO, Tjori; Janardan Pandey, Founder and MD, Nett Value Media PVT LTD; Dr. S S Mantha, FMR Chairman, AICTE; and Dr. Anurag Batra, Chairman and Editor in Chief, Business World; analyzed the package provided by the government along with throwing light upon the way forward.

Hemant Kanoria emphasized of the importance of “liquidity”, and how people are awaiting “more short term measures”, to be given out in the recent future. Adding onto this point, Rajan Mathews highlighted how nothing has been done in few sectors of the economy and the “cascading benefits of these sectors” are being completely sidelined, especially the telecom industry which gives a significant contribution to the national GDP. When it some to what the government can do, Mr. Mathews was of the belief that “incentive must be created”, and there needs to be more done from the governments side. He further questioned the fact that “India has a large gold reserve, and what are we doing with it?” A point to ponder upon.

Dr. Anurag Batra reiterated several times that this is only the “first installment and more are to come”. He also talked about “long term economic clusters” and  the role of “dividends”. Uddhav Poddar was of the stance that “a lot could have been done”, and that “the real estate was suffering” to a certain extent.

When analyzing the relief funds let out by the government, Mahendra Swaroop highlighted how a “stimulus is needed”, but “reforms were provided”. A “continuous stimulus” needs to be given, as it may take years before “supply” is back to normal. In terms of the sectors given aid/not given aid, he put forth a very simple analogy, ‘a doctor puts a person on ventilator when there is hope, sometimes the doctor know that the patient will pass on, and therefore does not waste space on them and focuses on helping someone else. A ventilator is only provided to those who need it, few people become better without it, and few need it.’ This mirrors the state of the economy. Adding onto this point, Janardan Pandey talked about how packages like these would have been the ‘best response in 2008’, when a recession would not have been lingering in the air.

Mansi Gupta discussed how this is a chance for a “new India”, and there are immense opportunities. She is of the belief that only those with the ability to be “relevant, agile and self-reliant” will survive and move on. When it comes to education, Dr. S S Mantha was of the opinion that the amalgamation of education and entrepreneurship needs to be done, and several skills need to be institutionalized. The package could have better incorporated education was the general feel.

In conclusion, while there is lot of scope, and ideas, people remain optimistic of what is to come.