The economy is steadily recovering from the devastating impact of the coronavirus disease (Covid-19) pandemic, but it requires more calibrated fiscal and monetary policy measures to accelerate the growth momentum in sync with the Atmanirbhar Bharat Abhiyan (Self-reliant India Initiative), according to a review conducted by Prime Minister Narendra Modi with finance minister Nirmala Sitharaman on Tuesday, two people aware of the development said.
During discussions on the current economic scenario with senior bureaucrats on Tuesday, the Prime Minister assessed the impact of the two stimulus packages already announced by the Centre and considered the contours of a third stimulus that will be required to build on the gains so far, they officials cited above said, requesting anonymity.
They said the PM and the Prime Minister’s Office (PMO) is regularly in touch with key ministers and officials on economic matters and the Tuesday meeting is the part of it. “The government is confident of a V-shape recovery as the worst is over,” one person said.
A second official said the government’s focus is now to incentivise ‘Make in India’ and make India a global manufacturing hub for those who want to shift their base from China with a prime focus on employment generation.
PM has been briefed about a proposal to extend production-linked incentive (PLI) to six-seven manufacturing sectors and contours of another stimulus to boost demand, the official said. Proposals for PLI schemes are ready for sectors such as automobiles, electronics, telecommunications, pharmaceuticals, medical devices, textiles, food processing, white goods and speciality steel, he added.