He also noted that while early signs of economic recovery are encouraging, sustainability of this recovery will be key
The next few months will be “critical” for the country in the bid to revive economic activity and further fiscal measures may be warranted to ensure that recovery gathers pace, Niti Aayog Vice Chairman Rajiv Kumar said on Friday.
He also noted that while early signs of economic recovery are encouraging, sustainability of this recovery will be key.
“The ‘next few months’ will be critical for India as well in the bid to revive economic activity.
“… the downside risks are still very real. Further fiscal measures may be warranted to ensure that the recovery gathers pace and does not peter out,” he wrote in Niti Aayog’s newsletter ‘arthNITI’.
In May, the government announced a nearly Rs 21 trillion stimulus package to help over the economic crisis induced by the coronavirus pandemic and subsequent lockdowns.
India’s economy grew 4.2 per cent in 2019-20. For the current financial year, various global and domestic agencies have projected a sharp contraction of the domestic economy.
On a year-on-year basis, most of the high frequency indicators are still in negative territory, Kumar said, adding that the fiscal deficit is expected to widen significantly.
Source: Business Standard
