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Slowdown a structural adjustment, not unduly perturbed by it: Piyush Goyal

"India, being an economy with huge opportunities, could do well without this kind of a slowdown," Goyal said.

, ET Bureau|
Updated: Oct 15, 2019, 07.15 PM IST
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PTI
piyush-goyal.PTI
Asserting that this is the right to time invest in the country, Goyal urged the investors direct funds in India, before the economy picks up again.
NEW DELHI: Commerce and industry minister Piyush Goyal has described the ongoing economic slowdown as a structural adjustment, periodic in nature, and said that this was the right time to invest in the country before the growth momentum returns.

The Indian economy grew 5% in the first quarter of the current financial year and most multilateral institutions have scaled down the country’s growth forecast for the year. The World Bank, for instance, recently slashed its outlook for India to 6% from April estimates of 7.5% for FY20.

“I think once the period starts getting better and better, we tend to loosen ourselves a little bit. We don’t care if we use a little bit extra energy, we don’t care if our productivity goes down a little bit,” Goyal told the India Energy Forum in New Delhi on Tuesday.

“Times are good, profits are welcome. And every few years there is a little bit of this structural adjustment,” he said.

Goyal said he is not unduly perturbed by the slowdown. “Of course, India being an economy with huge opportunity could well do without this kind of a slowdown,” he said, adding that the government is working to see how it can re-energise various sectors.

The Indian Railways increased capex around 2.5 times during 2014-19, of what it did in the previous five years. Prime Minster Narendra Modi has shared his vision to see $700 billion worth of investment pouring into the railways over the next 12 years, said Goyal, who also manages the railways.

With this size of an investment, the Indian Railways can “become both an engine of growth as well as bring down the logistics cost which will impact all industries in the country”.

Referring to India’s trade relations with the US, Goyal said: “I don’t think we have any disputes, we have had some disagreements. We welcome a little bit of nok-jhok (bantering). I think a little bit of uncertainty helps in taking things forward.”

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Goyal blames structural adjustment for slowdown, says nothing to worry

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