Without liquidity to NBFCs, economy gloom will continue: Ajay Piramal

After the IL&FS episode , funding dried up and there was no disbursal to MSMEs, housing and auto, says Ajay Piramal

Piramal Enterprises Chairman Ajay Piramal says the drying up of funding to non-banking financial companies (NBFCs) has contributed to the slowdown. NBFCs need to be provided with liquidity if they have to start lending. Piramal tells Abhijit Lele that in the absence of such liquidity infusion, the current mood of gloom will continue, hindering revival. Edited excerpts:

What is your assessment of the current state of the economy?

There is no demand. I hope the government will take steps to revive consumption. People should feel like spending more. One of the ways to do that is to ensure that NBFCs have got