India’s economy urgently needs increased fiscal spending from the government to support businesses that have suffered stress from the COVID-19-related disruptions, as well as households and individuals worst hit by the pandemic, CII president Uday Kotak said on Wednesday. “Even if it [fiscal deficit] went a little above 6.8-7%, I think that’s not the end of the world, expand the fisc, support the weaker segments of society or stressed sectors,” he added. After recommending stringent curbs on economic activity to contain the ‘suffering’ from the pandemic, Mr. Kotak earlier this month urged companies to take ‘voluntary measures’ to break the COVID transmission chain by minimising all in-person work. Mr. Kotak, who completes his term at CII’s helm on May 31, said the coming months would require careful calibration to revive the economy. We must ensure that the shocks are either taken by the State or by the capital cushions in financial institutions.

Source: The Hindu May 26, 2021 17:29 UTC