Next Stimulus Should Focus On Infrastructure Building: Rajiv Kumar
New Delhi: NITI Aayog Vice Chairman Rajiv Kumar on Thursday said that the next round of stimulus package from the government should be focused on infrastructure as it has multiplier effect and can sustain growth.
His statement comes just days after Union Finance Minister Nirmala Sitharaman said that another round of stimulus is not off the table for the government.
Calling for special emphasis on short gestation projects, the NITI Aayog Vice Chairman also said that productivity enhancing measures are required to boost the economy.
Speaking at the seventh National Forum of Public Affairs Forum of India (PAFI), he also observed that the contraction in India’s GDP in the current financial year may not be as bad as projected by many. He attributed his observation to several signs of recovery in the months of August and September.
He noted that a broad-based recovery cross sectors has been observed and the coming quarters are expected to be far better than forecasted.
About the vaccine delivery mechanism for Covid-19, he stated that the government is working on creating an effective system which involves aspects of universal coverage, unique and portable IDs and the optimum use of biometrics and technology.
Kotak Mahindra Bank Ltd Managing Director & CEO and CII President Uday Kotak said that the best time to invest in some key sectors of Indian economy is when things look challenging.
While global investors are looking at money and stable, predictable and consistent policies over a period of time, domestic policy has to encourage unlocking of domestic risk capital, he said.