Govt working on another stimulus package… India recovering: Finance secretary

Finance secretary Ajay Bhushan Pandey on Monday hinted that another installment of a stimulus package was being considered to push the lethargic economy even as he added that India was already on the road to recovery from the blow dealt to the economy by the COVID-19 pandemic.

“We are getting suggestions from FICCI, CII, MSME, traders associations and other ministries. After examining all these, we will do an intervention, just like the stimulus packages and interventions announced by us earlier. This is what the FM has said,” Pandey told news agency ANI.

Talking about the stressed sectors, Pandey added, “Some sectors like hospitality and transport are stressed. The real estate sector was facing problems but now it is recovering. We are analysing every sector and this is a continuous process.”

India, where reports say 40 million people will be pushed into poverty in the aftermath of the pandemic, has taken an economic hit with the GDP expected to contract 10.5%.

However, Pandey said that green shoots of recovery are visible now. “The COVID-19 pandemic has not ended yet but signs of recovery (of the economy) can be seen. It means that we are getting results of the remedial measures taken by us, on different levels at different times,” the finance Secretary added.

“Economic parameters like electricity consumption, exports, imports, E-way bill, GST collection tell you about the overall economy. It has almost reached pre-COVID level in most sectors. Some sectors still impacted, some heading towards positive territory,” he said.