The government said on Tuesday that India’s growth story is intact despite the coronavirus disease (Covid-19) pandemic. The announcement was made by the Department of Economic Affairs (DEA), which reports to the Ministry of Finance.
“India continues to see a rebound in the economy over the last few months since unlocking. We expect further improvement in the economy in the coming months, ”said DEA Secretary Tarun Bajaj, according to the PTI news agency.
He also said that high food prices are a temporary phenomenon. “We have taken steps to cool prices,” Bajaj said.
He also said that Finance Minister Nirmala Sitharaman will announce the next package of stimuli soon. The finance ministry is analyzing requests and comments from the industry on the package, Bajaj added.
Finance Secretary Ajay Bhushan Pandey had hinted on Sunday that the government is working on another stimulus package but declined to give a deadline.
“We continue to monitor the situation on the ground to assess which sector of the economy or segment of the population needs what kind of help when and respond accordingly. We continue to take suggestions from industry organizations, trade associations, various ministries and after reviewing their suggestions and requirements of the economy, we come out with appropriate measures, “Pandey told the ANI news agency.
The Reserve Bank of India (RBI) had said last month that the economy is likely to contract 9.5 percent in the current fiscal year. GDP contracted 23.9 percent in the first quarter of the fiscal year, according to estimates by the Central Statistics Office (CSO).
Finance Minister Nirmala Sitharaman had introduced a new demand stimulus package last month, offering incentives for consumers to spend more before the holiday season in an attempt to lift the economy out of a stupor.
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