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IIC Seeks Rs 3 Lakh Crore Stimulus, RBI Balance Sheet Expansion | India News


NEW DELHI: Industry body IIC said on Thursday there was scope to offer a Rs 3 lakh-crore stimulus, including cash transfers to households, to stimulate demand and boost economic activity that it said has received a beating due to the second wave. At the same time, he also suggested that the RBI could expand its balance sheet to ensure that higher spending doesn’t drive up the cost of interest.

IIC Seeks Rs 3 Lakh Crore Stimulus, RBI Balance Sheet Expansion | India News

Citing a survey conducted by him, the lobby group said that 51% of respondents expected an adverse impact on production and sales during the first quarter, as the company’s employees had been infected in addition to increasing medical costs. , which resulted in a revenue contraction. He assessed overall GDP growth at 9.5% during the current financial year due to a strong recovery in the second half.
Assuming three different fiscal scenarios with a fiscal deficit of 7-8% of GDP, the IIC suggested that there was scope to provide an additional stimulus of about 1.3% of GDP. “A fiscal stimulus of Rs 3 lakh crore is required,” said new IIC President TV Narendran, who is also Tata Steel MD. He recommended a significant increase in vaccination to at least 71.2 lakh of daily injections on average, more than double the current level.

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