Businessmen not putting fresh capital or putting up new plants: Akash Jindal

New Delhi, Feb 15 (KNN) The small and medium entrepreneurs (SMEs) are not putting in fresh capital in their businesses mainly due to global slowdown and present economic scenario in the country, said eminent economist Akash Jindal.

In the wake of falling exports and poor IIP data, the economists have raised serious concerns over the investment sentiments amongst the investors here.

“Despite efforts being made by the government, the economy is not recovering and even the corporates are not doing well,” he said.

Jindal pointed that one of the reasons for lesser investment flowing into the businesses here is that important Bills like GST (Goods and Services Taxes), Land Bill, and MSMED Act are still pending in the parliament after much delay already.”
 
In the wake of falling exports and poor IIP data, “Our businessmen are not happy and they are not putting fresh capital or coming up with new plants,” he explained.

Reacting to the recently released GDP data, he said that GDP data clearly shows that the economy is performing relatively better that other emerging market economies or developed economies.”

“We are targeting around 7.5 percent GDP growth, while the other economies are expecting GDP of around 3.3 percent; we are growing at the double the pace of the world GDP. On that terms we are definitely doing well,” he added.

“US and China are not doing well, Europe is doing badly. Banks have issues with Europe, Brazil and Russia. Their economies depend upon commodity exports but the Commodity is quite down, so they are also not expected to do well. So in that context, our GDP is better,” explained the economist. (KNN Bureau)