Principal Economic Adviser -- Sanjeev Sanyal has said the government recognises the need for further stimulus at an appropriate time to perk up demand in the economy, hit by COVID-19. He said there is space on the monetary and fiscal side to implement further stimulus.
Talking about the anxiety over low demand in the economy, he said unlike many countries which may have gone from very large upfront demand creation, the approach of India was basically focused on creating a safety net, both for the vulnerable sections of society and business sector given the fiscal constraints.
He said ‘if we tried to re-inflate consumption demand in April, May, June it would have been entirely a waste of resources for the simple reason we ourselves have locked down all the avenues for spending.’ With unlock taking place, he said the manufacturing sector is gradually getting back to the pre-COVID levels and the services sector will gather momentum.