Fiscal package may be on cards to maintain India's economic recovery amid Covid resurgence
A fiscal stimulus package may be on the cards again as the government looks at ways to prevent the present surge in Covid-19 cases and the ensuing restrictions imposed by the states from derailing the economic recovery.
After last year's lockdowns, which resulted in the country's GDP contracting by (-) 23.9 per cent, it was hoped that the economy will grow handsomely in FY22 to register a double digit growth.
For this to happen, the RBI has projected a Q1 FY22 GDP growth of 26.2 per cent. But the recent surge in the pandemic has again raised serious questions about the health of the economy.
There are some discussions within the government about the need, shape and timing of a fresh fiscal stimulus package. The idea is to see that the poor and small businesses do not suffer and their livelihood support is not disturbed, said an official source, on condition of anonymity.
The source said that any such package, if finalised, would come up later this month or next month.