20% of India’s productive resources remain unutilised: MS Sahoo

MUMBAI: One fifth of India’s productive resources remain unutilised due to lack of effective mechanism to deal with exits and unblocking the same can add significantly to economic growth, said MS Sahoo, chairperson, Insolvency & Bankruptcy Board of India, speaking at a conference held by Confederation of Indian Industry (CII).

He said that this is where the Code, which provides for an easy, ordely and time-bound exit is expected to be an enabler.

Sahoo said that the Code will facilitate continuous and smooth flow of resources from less efficient uses to more efficient ones.

Rajnish Kumar, Managing Director-NBG, SBI, said, bullish economic environment saw excess liquidity chasing assets.

Another point that he highlighted was that huge investments were being done in the infrastructure sector since independence on the assumption of a robust consumption and GDP growth, however, none of the stakeholders including banks are in a position to anticipate unforeseeable circumstances especially linked to macroeconomic environment, he said.

He said that it was important that the narrative must pick a balanced approach here.