1. HDFC chief Aditya Puri hints ex PM Manmohan Singh wrong? Dubs economists’ 2%’ fall in GDP comment as ‘nonsense’

HDFC chief Aditya Puri hints ex PM Manmohan Singh wrong? Dubs economists’ 2%’ fall in GDP comment as ‘nonsense’

He ridiculed many economists' theory as baseless who said India's economy will grow at a crawling pace and dip 50-200 basis points. "I think it is absolute nonsense. How many times have analysts and economists been right? Some people say GDP will become 2%, some say 6%. The question is how do they know GDP will fall?" said Puri.

By: | New Delhi | Published: November 30, 2016 1:01 PM
HDFC Bank MD Aditya Puri, believes demonetisation should be looked at attaining long-term goals. (PTI) HDFC Bank Managing Director Aditya Puri believes demonetisation should be looked at attaining long-term goals. (PTI)

According to the Managing Director of HDFC Bank, Aditya Puri, demonetisation should be looked at from a long-term perspective and that too from the prism of a must-achieve goal for India, and that is of turning it into a cashless economy’. Speaking in an interview to the Business Standard, he said that as per the present scenario, demonetisation shouldn’t be looked at as a single and standalone event.

He ridiculed many economists’ theory as baseless who said India’s economy will grow at a crawling pace and dip 50-200 basis points. “I think it is absolute nonsense. How many times have analysts and economists been right? Some people say GDP will become 2%, some say 6%. The question is how do they know GDP will fall?” said Puri. This comment flies in the face of what former PM Manmohan Singh said in Parliament. The ex-PM had voiced fears that demonetisation may well shave off 2% of country’s GDP.

Puri said that, considering the mammoth nature of the exercise, there is bound to be ‘temporary aberration’ at the banks as of now. He stressed on the point that the government will most likely look to curb ‘excess cash’ from the system by applying measures such as the 100 percent CRR (Cash Reserve Ratio). He said once things settle, the RBI could ease the CRR.

Puri sympathised with the general public, saying problem is evident, as the decision on demonetisation was taken suddenly, keeping it a secret virtually to the last moment.

  1. S
    Srinivasan
    Dec 1, 2016 at 12:46 am
    I recollect from memory-Man Mohan Singh as Chief Economist in Indira regime corrected Then Finance Secretary about inflation expectation of 2 percent to 1 percent. But that year witnessed 12 percent inflation.So much for his wisdom.I have a feeling that puppet he looks, possibly big ticket reform of 1991 was perhaps of Narasimha RAO and MMS was only a parrot tool.He now seems neither economist not professor but a partyman.
    Reply
    1. R
      Ramesh krishnan
      Nov 30, 2016 at 3:05 pm
      I was disappointed by Manmohan Singh statement. He took a political stand over economics. I believe he would have been under some compulsion to make such statement.
      Reply
      1. X
        xyzabc
        Nov 30, 2016 at 5:26 pm
        I am not disappointed with MMS has talked about. That is his character. He may be great academician but end of the day guy is caged parrot in the hands of hi's. To be more specifically paid servant with no character left behind.
        Reply
        1. R
          Ramakant Tiwari
          Nov 30, 2016 at 11:46 pm
          His comments are most authentic and accurate.
          Reply
          1. S
            Selvam
            Nov 30, 2016 at 9:37 pm
            Remember when people spread - Doom and Gloom when the economy was liberalized in the 90's. Things take a wee bit of time to settle then it will be on a stronger base to kick forward.
            Reply
            1. P
              P M
              Nov 30, 2016 at 9:00 am
              Aditya Puri is applying butter on right side of bread considering nature of Government interactions at various levels his bank has .. keep it up with your can of liquid butter ..
              Reply
              1. Load More Comments

              Go to Top