Reliance Industries chairman Mukesh Ambani on Tuesday said that slowdown in the Indian economy was temporary and that the recent measures taken by the government would help boost the economy in the coming quarters. "Yes, there has been a slight slowdown (in the Indian economy). But my own view is that it is temporary," Ambani said at Saudi Arabia's annual investment forum Future Investment Initiative (FII) conference.
"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. Ambani, was speaking at the forum on the topic 'The next decade: How will a new era of economic ambition shape the global economy?'
Prime Minister Modi, who is in Saudi Arabia is the keynote speaker at this year's FII.
"Above all, there is a leadership accelerator. Both the countries are blessed with leadership that is unique in the whole world, at least in today's time," he said referring to PM Modi, Saudi King Salman bin Abdulaziz Al-Saud and his son Prince Mohammed bin Salman bin Abdulaziz.
Saudi Arabia, Ambani said, has seen tremendous transformation in the last 2-3 years. "For me, this is 1980 vintage China or India of the 1990s where India really took on the world map."
Indian economy has seen a growth rate decline in each of the past five quarters. The growth rate fell to 5 per cent in April-June 2019 from 8 per cent recorded last year. This is the lowest growth outturn since 2013.
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. Also, further capital is being injected into banks and the corporate tax rate was cut to their lowest level.
Ambani had in August announced that Saudi Aramco has agreed to take a 20 per cent stake in Reliance Industries' refining and petrochemicals business. The deal, which values the business at USD 75 billion including debt, is supposed to close the first half of 2020 and would be one of the largest foreign investments in India. As part of the deal, Aramco will provide Reliance's refinery business with about 500,000 barrels of oil a day, double the size they currently buy from the OPEC kingpin.
(With PTI inputs)