meanwhile State Bank of India (SBI) Chairman Rajnish Kumar also said credit demand remains subdued and there is a need for stimulus in the economy.
Though lack of credit demand exists in the economy, there is no supply-side constraint as the public sector banks are more or less well-capitalised, he said.
“Demand for credit in the economy is subdued. There is a need for stimulus in the economy”, Kumar told reporters here.
BJP Mp Subramanian Swamy has said the withdrawal of Jammu and Kashmir’s special status was correct but the state of economy “needs to be corrected” as this issue is also important for national security and nation-building.
The Rajya Sabha MP told reporters Sunday the “wrong policies” adopted during former finance minister Arun Jaitley’s tenure were responsible for the economy slowing down. He also criticised ex-Reserve Bank of India governor Raghuram Rajan for raising interest rates.
“I think the wrong policies adopted during the tenure of Arun Jaitley, which are still in force, such as levying high taxes are some of the reasons for the slowdown… Increase in interest rates by former RBI governor Raghuram Rajan was one of the reasons (for the slowdown),” said Swamy.
Replying to a question on the Centre’s move to scrap the provisions of Article 370, which gave special powers to Jammu and Kashmir, and the economy, Swamy said, “The economy needs to be corrected. My advice was not sought on the economic front. My advice was sought on Article 370, and it was done correctly.”
“Yes, the economy should be given priority. In fact, both things are important for nation-building and national security,” he added.
Jaitley served as finance minister during the first term of the Narendra Modi government.he is on life support at the All India Institute of Medical Sciences in Delhi.