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Next stimulus should focus on infrastructure projects: Rajiv Kumar
Oct-23-2020

Niti Aayog vice chairman Rajiv Kumar has said that Indian economy is likely to end up with a lower contraction in current financial year (FY21) than projected by various organisations while suggesting that the next stimulus should focus on infrastructure.

He mentioned ‘I think this third quarter we will see smaller contractions than had been forecast and the fourth quarter could well be a wash if not a small positive. Talking about on the much anticipated stimulus, he said the next stimulus should focus on short gestation infrastructure projects as it has strong multiplier effects and can sustain growth. There is enough productivity enhancing expenditures which can be rolled out in a relatively short span.

The Reserve Bank of India had projected the Indian economy to contract 9.5% in the current fiscal while the International Monetary Fund (IMF) and World Bank estimated the contraction at 10.3% and 9.6%, respectively.

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