Niti Ayog alarms for economic slowdown for Govt in 70 years

Niti Aayog Vice Chairman Rajiv Kumar alarms economic slowdown and says "unprecedented situation that India has not faced in last 70 years". His comments have raised eye brows when country's economy is facing worst pace of growth in nearly five years.

He further added through ANI that "From last 70 years, government of India has not faced this sort of liquidity situation where entire financial sector is in churn and nobody is trusting anybody else." 

Central Bank as well as other non govt banking is also providing liquidity to the system and various non banking finance companies. The decision of government permitting public sector banks to purchase high-rated pooled assets of financially sound NBFCs. Steps like reduced repo rate four consecutive times this year by RBI and also rate cut benefits to borrowers by banks. NBFC's will be raising funds from public issues to bring churn of money to the market to reduce slow down.

The government in a bid to improve liquidity is also proposing to bring housing finance companies under the RBI from the fold of National Housing Bank. These steps are aimed to improve the condition of the NBFC sector as a whole, Kumar said.