The government said on Tuesday that India’s growth story is intact despite the coronavirus disease (Covid-19) pandemic. The announcement was made by Department of Economic Affairs (DEA), which comes under the finance ministry.
“India continues to see uptick in economy for past few months since the unlock. We are expecting further improvement in economy in months to come,” DEA Secretary Tarun Bajaj said, as reported by news agency PTI.
He also said that elevated food prices is a temporary phenomenon. “We have taken measures to cool down prices,” said Bajaj.
He also said that finance minister Nirmala Sitharaman will announce next set of stimulus soon. The finance ministry is looking at request and comments from industry on package, added Bajaj.
Finance secretary Ajay Bhushan Pandey had on Sunday hinted that the government is working on another stimulus package but refrained from giving a timeframe.
“We keep monitoring the situation on the ground to assess which sector of the economy or segment of the population needs what kind of help at which time and respond accordingly. We keep taking suggestions from industry bodies, trade associations, various ministries and after going through their suggestions and requirements of the economy, we come out with timely measures,” Pandey told news agency ANI.
The Reserve Bank of India (RBI) had last month said that the economy is likely to contract by 9.5 per cent in the current fiscal. GDP contracted 23.9 per cent in the first quarter of the fiscal, as per the estimates of the Central Statistics Office (CSO).
Finance minister Nirmala Sitharaman had unveiled a fresh demand stimulus package last month, offering incentives to consumers to spend more ahead of the festive season in an attempt to stir the economy out of stupor.