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Slowdown in India is temporary, govt reforms will pay off: Mukesh Ambani

Mukesh Ambani said the country has reasons to be more optimistic for the next decade.

ET Online|
Last Updated: Feb 29, 2020, 10.14 PM IST
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Ambani further added the slump was caused by external turbulence, and the country has reasons to be more optimistic for the next decade.
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Mukesh Ambani, the chairman and managing director of Reliance India, believes India's current slowdown is temporary and he was hopeful that government's reforms would soon pay off.

Ambani said the slump was caused by external turbulence, and the country has reasons to be more optimistic for the next decade. Asia's richest man lost some $5 billion of his wealth year to date in notional terms.

The Sensex crashed nearly 3,000 points in 11 sessions since February 12, when Dalal Street first caught the chill from Coronavirus that has the globe in its grip. This stock rout has wiped off Rs 11.52 lakh crore of equity investors’ wealth on Dalal Street. Ambani's Reliance has been the most affected in terms of loss of market capitalisation of listed stocks. The market-cap of all RIL firms have come down by Rs 53,706.40 crore between February 13 and February 27. In Friday's market crash, as Sensex plunged 1,100 points, RIL shares fell 2.8 per cent.

Ambani's optimism came on the day India released its growth numbers. Asia's third-largest economy grew 4.7% in the December quarter, its slowest pace in nearly seven years, declining further from an upwardly revised 5.1% in the previous quarter, undermining suggestions that the slowdown may have bottomed out. Experts feel the rapid spread of Covid-19 is only going to make things worse and probably delay a recovery.

Ambani, however, sees a reversal in the coming quarter. "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."


(Catch all the Business News, Breaking News Events and Latest News Updates on The Economic Times.)

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