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De-leveraging by corporate sector has helped Indian economy to build resilience, NITI Aayog vice chairman Suman Bery said on Friday, indicating the ability of the corporate sector to make fresh investments.

Speaking at the CII Global Economic Policy Summit organised by the industry chamber, Bery said that India has an innate resilience and that deleveraging by companies has helped in a big way.

“Perhaps with a little bit of assist from the Insolvency and Bankruptcy Code (IBC) and the National Company Law Tribunal (NCLT), I think that over the last few years, formal sector corporate India got the message, smelt the coffee and basically future proofed itself by deleveraging itself in a big way. I think that is an important part of resilience," said Bery.

Bery also said that India’s G20 presidency is an event for all of India--states and the Centre combined. He was in a conversation session with Sanjiv Bajaj, president, CII and Chairman and Managing Director, Bajaj Finserv Ltd.

N K Singh, Chairman, Fifteenth Finance Commission, who also spoke at the event separately, said that the framework of GST council can be replicated in other areas including agriculture, social sectors and more importantly, the digital economy to ensure active cooperation between the centre and states. He was speaking on centre-state partnerships.

Singh noted that active participation of states would be critical for meeting India’s net zero commitments. He added that minimizing the degree of risks in this transition would be a priority and that it is important to work out a mechanism in which the states could become active participants in the process.

“The orderly movement from the era of fossil fuels to renewable energy is a daunting challenge" Singh stated. In the context of decarbonization, he said that the important decision to be taken would be on the kind of taxes which can be levied and the benefits these taxes would bring in facilitating decarbonization. All taxes on fossil fuels must be designed to facilitate India’s transition to a green economy, a statement from CII said quoting Singh. “Changing patterns of agriculture will be central to reducing fossil fuels and helping in the green transition," the statement said quoting Singh. (ends)

ABOUT THE AUTHOR

Gireesh Chandra Prasad

Gireesh has over 22 years of experience in business journalism covering diverse aspects of the economy, including finance, taxation, energy, aviation, corporate and bankruptcy laws, accounting and auditing.
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