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Stimulus option on table as govt monitors revival

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  • Centre is paying extra attention to ensure that its planned capital expenditure is executed without any hurdles
  • Modi administration has already raised its borrowings for the current year by 53% to 12 trillion to deal with the humanitarian and economic impact of the coronavirus crisis

A second round of stimulus measures for the economy is on the table, and the central government is closely monitoring how different industries are recovering so that it can support them when needed, a senior government official said.

The Centre is also paying extra attention to ensure that its planned capital expenditure is executed without any hurdles.

The government wants to time any further easing of its purse strings to deliver the maximum impact. It fears that delivering another round of stimulus measures before the coronavirus pandemic has peaked in India won’t provide optimal results.

“We are keeping all options open and are watching the situation closely," the official said on condition of anonymity.

“(We will) keep supporting sections of the industry as and when there is a need," said the official, pointing to the evolving situation. “After all, the pandemic is not yet over. We do not have a vaccine yet," said the official.