Raghu Ram Rajan said about corona virus & Delhi riots, impact in share market & GDP

corona virus impact in NSE, BSE

Today again we see that how market attacks Dalal Streets.
Domestic stocks wiped Rs 5.53 lakh crore of investor wealth with the total market capitalization of BSENSE (-3.47 %) falling below Rs 150 lakh crore.

Now this impact is not only done by corona but also the riots in Delhi.
See the live update of Delhi riots

1. The BSE Sensex dropped to 1,448.37 points, or 3.64 percent, down at 38,297.29. 
   
2. NSE barometer Nifty fell 414.10 points or 3.56 percent to 11,219.20.
3. The BSE m-cap fell Rs 5.53 lakh crore to Rs 146.87 lakh crore.

depending on this situation our former RBI president

 Mr. Raghu Ram Rajan 

has said the slowdown in growth is due to the current government focussing more on meeting its political and social agenda rather than paying attention to the economy. 

"India can still reverse its slowing economic growth by paying attention to key issues" he said.

In an interview with Bloomberg TV, Rajan said, unfortunately, 

the current government after a massive election win has 

"focus more on fulfilling its political and social agenda 

rather than paying attention to economic growth".

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"Unfortunately, this drift has continued a pace of slowing 

growth, which was precipitated initially by some actions the 

government took such as the demonetisation and a poorly rolled out Goods and Services Tax (GST) reform," Rajan said.

India's GDP growth hit nearly 7-year low of 4.7 per cent in the December quarter, as per official data released on Friday.

The GDP growth for the quarter is the lowest since January-March of 2012-13.

In the interview, which was telecast before the official 

numbers were released, Rajan said India has not paid 

sufficient attention to cleaning up the financial sector and unfortunately, that is leading to the slowing growth.

"These are things that they can change if attention is paid to them and appropriate actions are taken," Rajan, Professor of Finance at University of Chicago Booth School of Business, said.

click to read: DON'T SHOP WITH COMBO OFFER. SEE HOW GOVERNMENT MAKE US FOOL

On being asked about the spread of the coronavirus globally and its impact, he said there will certainly be some legacy 

issues in terms of business rethinking in the global supply chain.

"If it is disrupted anywhere, the entire supply chain is held ransom and companies are going to start rethinking that should we actually have these really spread out global supply 

chain or to bring them back closer home and how much diversification should we have? Should we have multiple production sites across the world rather than have it focussed primarily in Asia," he said

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Hi, Myself CMA Mousam Roy having more than 5 years experience in commerce field,teaching field as well as professional field with working with PSU and big Firm.