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India’s economy expected to bounce back from next fiscal, says SBI chairman Khara

The corporate sector will become “very careful about borrowings” and use their internal resources initially.

SNS | New Delhi |

The Indian economy, which has shown resilience to come out from a downturn caused by the pandemic, is expected to bounce back from the next fiscal, State Bank of India chairman Dinesh Kumar Khara said on Saturday.

The SBI chief made the statement while addressing the virtual annual general meeting of Bengal Chamber of Commerce and Industry. He said that there will be a “paradigm shift” which will lead to a more matured economy” with economic players learning to contain costs.

“The economy is expected to bounce back from the next fiscal starting from April 2021. The next normal will see a paradigm shift and some of them will be permanent.”

He added that the economy had shown “resilience to come out from the downturn” and some positive traction was witnessed towards the end of the first quarter of the current fiscal.”

According to him, investment demand from corporate will take some time to pick up.

“Average capacity utilisation among the corporations is around 69 per cent. Investment demand from corporate will take some time to pick up. The cash-rich PSUs will initially embark upon capital expenditure plan which will generate investment demand,” he said.

The corporate sector will become “very careful about borrowings” and use their internal resources initially.

He further pointed out the industries such as steel and cement are doing well since the beginning of April 2020 and now they are at a position from where they can tap the export markets.