India still has fiscal space for more stimulus: Principal Economic Advisor Sanjiv Sanyal

India still has fiscal space for more stimulus: Principal Economic Advisor Sanjiv Sanyal

India should not only be the back-office of the world, it can also be the front-office of the world.

Principal Economic Advisor Sanjiv Sanyal on Thursday said there were more economic stimulus in the pipeline. He said during the MCC Chamber’s annual general meeting that addressing the economic problems of the pandemic was a marathon and the government planned to provide end-to-end support. “Stimulus measures are coming in tranches and more would be in the pipeline.”

Unlike many other countries, India did not splurge on a big package. It did not press the accelerator and the brakes at the same time. Consequently, it currently enjoys both monetary and fiscal space, and India is in a good position with additional forex reserves of $100 billion created in the last six months, he said.

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The Government will support demand over a period of time. It has introduced the production-linked incentive (PLI) scheme, which will encourage investments. Unlike certain other countries, India has adopted supply side measures and brought in new labour laws with a view to transform India from a passive market to a manufacturing hub.

India should not only be the back-office of the world, it can also be the front-office of the world. In this regard, the government will ease regulations wherever possible. An AtmaNirbhar Bharat does not seek import substitution. In fact, it wants to be a part of global supply chains with flexibility and resilience.

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