A day after he termed the stress in India's financial sector as unprecedented, Niti Aayog vice chairman Rajiv Kumar on Friday urged media to stop misinterpreting his statement.
“The government has been taking bold steps to accelerate our economy & will continue to do so. There is no need to panic or spread panic,” Kumar said in a tweet.
“The cassandras should now accept that the government is well on top of the situation and will do all it can to revive the 'animal spirits' in the economy,” he further said.
Kumar had said on Thursday that nobody had faced this sort of situation in the last 70 years where entire financial system was under threat. "Nobody is trusting anybody else... within the private sector nobody is ready to lend, everyone is sitting on cash...you may have to take steps which are extraordinary," he said.
Explaining how stress in the financial sector has led to a slowdown in the economy, he had said the entire episode started with indiscriminate lending during 2009-14 leading rise in non-performing assets (NPAs) post 2014.