New Delhi, February 1: Industrialist Niranjan Hiranandani, who heads the real estate Hiranandani Group, said the liquidity crisis being witnessed under current circumstances is the worst-ever. His remarks, a stinging critique of the state of economy, came shortly before the Union Budget 2020-21 was rolled out by Finance Minister Nirmala Sitharaman. Catch Live Updates of Union Budget 2020-21.

According to Hiranandani, the Budget will fail to move the market if the cash crunch is not addressed. Liquidity, he said, is the most essential component of the economy and without it being fixed, the economic slowdown would not cease to exist. A recovery will be on the cards only if the liquidity crisis is effectively addressed, along with the "boost of Budget".

"I've never seen a liquidity crisis as bad as it is today. No matter how good the budget is if the oil in the mechanism of the economy is not working, the economy can't move. If the oil comes back and we get boost of budget then we will see recovery," Hiranandani, the Chief Managing Director of Hiranandani Group, said.

Update by ANI

The economic slowdown has been deepening in India over the past eight months, with several sectors feeling the wrath of shrinking consumer demand. The purchasing power has particularly been deteriorated in the auto and real estate sectors. In view of the slowdown, international agencies as well as the Reserve Bank of India (RBI) have lowered the GDP growth expectations. As per the revised estimate issued by RBI in December, the overall economic growth rate will be 5 percent for the current annum.

(The above story first appeared on LatestLY on Feb 01, 2020 10:39 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).