“Yes, there has been a slight slowdown (in the Indian economy). But my own view is that it is temporary,” he said at the Future Investment Initiative (FII) Conference here.

“All the reform measures that have been taken in the last few months will see the outcome and I am quite sure that in coming quarter this will reverse,” he added. The Indian economy, which until recently was hailed as the fastest-growing major economy, has seen a growth rate decline in each of the past five quarters, falling to 5 percent in April-June 2019 from 8 percent recorded a year earlier. This is the lowest growth out-turn since 2013 and has largely been attributed to the slowdown in investment that has now broadened into consumption, driven by financial stress among rural households and weak job creation.

The government has taken a string of policy measures over the past couple of months to shore up the economy and revive credit. The measures include attempts to ease NBFCs’ liquidity positions by encouraging banks to purchase high-quality NBFC assets through credit guarantees and additional liquidity.

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