The government does not need to create a bad bank, instead, it could bring in money in the real estate sector, said Rajiv Kumar, vice-chairman, NITI Aayog, in an interview with CNBC-TV18.

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The Economic Survey 2020 forecast India's GDP growth to be in the range of 6 percent to 6.5 percent in the fiscal year 2020-21.

"I think some of the additional money must be spent by the government could be used to perk up the NBFCs sector again and to make sure that the banking sector begins to lend again in the same robust manner that it has done in the past," Kumar said.

According to him, "The Economic Survey has pointed towards the invisible hand towards making markets work, towards making competition work and getting the exports going again."

"Higher-end of growth will depend on global economic performance. The survey looking at higher growth in H2 vs H1 in FY20, 6-6.5 percent growth achievable in FY21," he said.

"I think the difference between the IMF and Economic Survey’s forecast is that the latter correctly looks at the second half of fiscal 2020 improving over the first half and probably getting to more like 5.2-5.3 percent, which will give you a fiscal 2020 growth rate of 5 percent and then moving on and growing from there to achieve 6 percent in FY21," Kumar added.

First Published:Jan 31, 2020 4:11 PM IST