Abhijit Banerjee, the joint recipient of the 2019 Nobel Memorial Prize in Economic Sciences, said that India needs to address the slow pace of disinvestment of public assets, stating that the country should look at disinvesting many more assets at a much faster pace.
While he feels that the Indian government doesn't have ample control over the fall in value of the rupee, he did point out circumstances under which India can possibly enter a recession.
Speaking exclusively to CNBC-TV18 on the sidelines of an event in Delhi, Banerjee said that it is obvious that India will be staring at a recession if global interest rates are very high and there's no demand for its indigenous products.
In view of India's inelastic demand for energy, he added that the possibility of recession would increase if the Russia-Ukraine War continues and Russia cuts supply of energy.
He explained that when the US goes on to recession, it has always been the case that the dollar appreciates compared to other currencies, stating that the world interest rates will go up as things slow down. However, he pointed out that though India escaped the impact of a slowdown in 2008, he doubts that the country will be able to escape it this time.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Lok Sabha elections 2024: BJP's bid for breakthrough in Kerala is an uphill battle, say experts
Apr 23, 2024 9:53 PM
2024 Lok Sabha Elections | PM's Rajasthan speech — has it anything to do with the post-poll mood of the first phase
Apr 23, 2024 3:45 PM
It's KGF 2024 and here's a look at the key characters in Karnataka
Apr 23, 2024 3:17 PM
JP Morgan: Nifty may test 25,000 if BJP wins in 2024 Lok Sabha elections
Apr 23, 2024 2:23 PM