Next few months critical for India to revive economic activity: NITI Aayog VC
India has taken several decisive steps, as per NITI Aayog, apart from monetary and fiscal easing to boost the economy
The next few months will be crucial for the country as it tries to revive economic activity, says NITI Aayog vice chairman Rajiv Kumar. He pointed out that while early signs of economic recovery are encouraging, sustainability of the recovery will be key.
“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,” Kumar wrote in arthNITI, Niti Aayog’s newsletter, said a report in The Times of India.
The government had announced a Rs 21 lakh crore stimulus package in May. It was aimed at helping India overcome the economic crisis triggered by the COVID-19 pandemic and the subsequent lockdown that it induced.
The NITI Aayog vice chairman said most of the high frequency indicators were still negative territory. on a year-on-year basis. But June data indicated some green shoots, he was reported saying.
He also said that a global economic contraction is on the cards. “The same is true for India. Economic activity was at a virtual standstill in April and May. And this was reflected in all high frequency indicators of the economy,” he was quoted saying by the Times of India.
India has taken several decisive steps, as per NITI Aayog, apart from monetary and fiscal easing to boost the economy. According to the report, Kumar stated that an ambitious vision of an Aatmanirbhar Bharat has been laid out by PM Modi. “Realising this vision will entail leveraging India’s advantages relative to the world,” he said.