MUMBAI, 01 SEPTEMBER, 2020 (GPN):  India, the world’s fifth-largest economy, is the second-worst performer in the Covid-19 hit quarter of the financial year 2020-21. India’s GDP has contracted by 23.9% in the first quarter of the FY 2020-21 as the coronavirus-related lockdowns weighed on the already-declining consumer demand and investment. However, agriculture showed a positive outlook.

Arya Collateral Warehousing Services, India’s premier post-harvest solutions company, Quotes-

“As far as we can see this is a parabolic downturn of the economy because as soon as India went into lockdown, people suddenly stopped spending thus resulting in a halt on goods and services produced within the country and there will be a sharp uptick as soon as we drive towards the solution of the virus. If we look minutely into the data just released, agriculture alone has shown positive growth with a share of 18% in GDP. The only bright spot was the rural economy, where the farm sector grew at 3.4% year-on-year in the quarter.

The agriculture, the farm sector is still growing, but it might not be enough to pull out the economy from this stagnation. There is no alternative to public spending in these trying times, people are locked inside their houses and only spending on essentials. The only way possible from here is stimulus announcement and public expenditure outlay in infrastructure, which may bring in the channelization of economic fundamentals required for the country’s growth.” – Prasanna Rao, Managing Director, Arya Collateral 

PROFILE: Prasanna Rao, Managing Director, Arya Collateral Warehousing Services

Prasanna Rao, is the Managing Director of Arya Collateral Management Services, one of the first Collateral Management Companies to be incorporated in India with a mission to deliver quality warehousing solutions with an effective blend of technology & business systems. 

Prior to this, he headed the Agri Commodity Finance Business of ICICI Bank and worked with organizations like Coca-Cola and Amul in corporate marketing and sales roles. He has completed his PGDM in Rural Management from Institute of Rural Management and has also been a Chevening Financial Services Fellow from King’s College, London.