India’s govt should focus on economic slowdown, says American economist Nouriel Roubini

By: |
Published: January 9, 2020 8:11:00 PM

Without explicitly referring to anti-Citizenship Amendment Act protests, Roubini said "problems on the street" also make foreign investors worried.

The possibility of continuing tension between the US and Iran, which is leading to military skirmishes, poses an additional challenge for India as the price of the imported oil will go up, Roubini said.

The Indian government has chosen to focus on ideological considerations rather than economic slowdown, American economist Nouriel Roubini said on Thursday. The professor of economics at New York University’s Stern School of Business also warned that there can be a loss of popularity if the economy goes down. Without explicitly referring to anti-Citizenship Amendment Act protests, Roubini said “problems on the street” also make foreign investors worried.

Speaking at an event organised by the CFA institute, he suggested to focus on economic issues at hand. He said the country’s growth, which is all set to fall to a decadal low of 5 per cent, is unlikely to go up this year, but it may “probably stabilise”.

India and other emerging markets may take up to two quarters more for a pick-up in economic growth, he said. The possibility of continuing tension between the US and Iran, which is leading to military skirmishes, poses an additional challenge for India as the price of the imported oil will go up, Roubini said. He also noted that the population dividend is not an asset for India if the youth is going to be deprived of education, healthcare and most importantly employment, and added that the country needs to create one million jobs a month.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Next Stories
1Govt’s fiscal woes to get deeper; asset sales plan likely to fall short of target by nearly 50%
2What can Prince Harry and Meghan Markle do for financial independence
3India needs 6.3 per cent labour productivity growth to attain 8 per cent hike in GDP: Ind-Ra