Industrialist Mukesh Ambani on Tuesday said the slowdown in the Indian economy was temporary and the recent measures taken by the government would help reverse the trend in the coming quarters.
Speaking at Saudi Arabia’s annual investment forum, also known as ‘Davos in the desert’, he said the reforms undertaken by the Indian government since August would bear fruit in the next few quarters.
“Yes, there has been a slight slowdown [in the Indian economy]. But my own view is that it is temporary,” he said at the Future Investment Initiative (FII) conference here.
“All the reform measures that have been taken in the last few months will see the outcome and I am quite sure that in coming quarters this will reverse,” he said.
The Indian economy, which, till recently was hailed as the fastest-growing major economy, has seen its growth rate decline in each of the past five quarters, falling to 5% in April-June 2019 from 8% recorded a year earlier. This is the lowest growth reported since 2013 and has largely been attributed to the slowdown in investment that has now broadened into consumption, driven by financial stress among rural households and weak job creation.
The government has taken a string of policy measures over the past couple of months to shore up the economy and revive credit. These measures should gradually improve the flow of credit and nudge up growth, analysts have said.