Next Few Months Are Critical in Bid to Revive Country’s Economy: Niti Aayog VC
The subsequent few months will be “critical” for the nation in the bid to recover economic movement. Further fiscal stratagems may be assured to assure that revival gathers speed, Niti Aayog Vice Chairman Rajiv Kumar reported.
He also remarked that while new signs of economic recovery are promoting, the sustainability of this recovery will be crucial.
“The ‘upcoming few months’ will be crucial for India as well in the attempt to restore economic activity.
“… the downside risks are, however genuine. Further fiscal actions may be approved to assure that the restoration finds speed and does not peter out,” he wrote in Niti Aayog’s newsletter ‘arthNITI.’
The stimulus package declared by the Modi-led government to help across the economic crisis.
In May, the government declared an approximately Rs 21 trillion incentive package to help across the economic crisis caused by the pandemic coronavirus and following lockdowns.
India’s economy expanded 4.2 percent in 2019-20. For the current financial year, several global and domestic companies have proposed an evident reduction of the local economy.
More details pointed out by Niti Aayog Vice Chairman Rajiv Kumar.
On a year-on-year basis, most of the high-frequency signs are still in negative territory, Kumar said, adding that the financial debt is assumed to extend significantly.
Still, data for June appears to imply there are some green shoots evident, he said.
The Niti Aayog Vice-Chairman remarked that a global economic recession is on the cards, the extent of which is experiencing continuous change.
“Similarly, it is true for India. Economic activity was at a virtual pause in the month of April and May. And this was exhibited in all high-frequency symbols of the economy,” he told.
Kumar also denoted that India has taken numerous determining steps aside from monetary and fiscal easing to encourage the economy.
“A hopeful thought of an Aatmanirbhar Bharat has been placed out by the Prime Minister Narendra Modi. Realizing this vision will require leveraging India’s advantages related to the world,” he remarked.
Moreover, Kumar said that countries are also taking on more and more debt as they declare stimulus packages to combat the economic crisis caused due to the widespread of the pandemic COVID-19.
“With government debt levels at historic highs, and interest charges at historic lows, the credit-driven extension is expected to be economical at best,” he stated.
However, Kumar said the price of gold means inspiration to safe asset opportunities to preserve wealth.
“As prices of gold continue to increase, we also need to watch out for inflation in asset prices related to consumer prices, as the market is currently awash with liquidity.
“The world can unwell afford a monetary crisis on the peak of an economic one,” he added.
The whole world is suffering from the economic crisis caused due to the lockdown induced by the pandemic coronavirus. The world has faced a slow down in the economy as to combat the widespread of the novel virus every country imposed lockdown and several restrictions in their countries.
Unfortunately, with all preservative measures, many lives were lost due to the pandemic.
