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    More calibrated fiscal, monetary policy measures to accelerate growth in the offing , say sources

    More calibrated fiscal, monetary policy measures to accelerate growth in the offing , say sources

    More calibrated fiscal, monetary policy measures to accelerate growth in the offing , say sources
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    By Timsy Jaipuria   IST (Published)

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    In what could give a leg up to Prime Minister Narendra Modi’s clarion call to make India self-reliant or Atma Nirbhar, the government is considering to come up with more “calibrated fiscal and monetary policy measures to accelerate growth” to help economy recover from the impact of the pandemic.

    In what could give a leg up to Prime Minister Narendra Modi’s clarion call to make India self-reliant or Atma Nirbhar, the government is considering to come up with more “calibrated fiscal and monetary policy measures to accelerate growth” to help economy recover from the impact of the pandemic.
    According to sources, the government is also evaluating impact of currency on trade growth and may consider intervention measures only once it studies the impact on exim trade of the country. “India has a silver lining lying in the current account surplus, which is giving a cushion to the government to expand exports, reduce imports and stimulate the economy,” sources added.
    The Prime Minister discussed the current economic scenario with finance minister Nirmala Sitharaman and senior bureaucrats on Tuesday, assessed the impact of two stimulus packages already announced and considered the contours of a third stimulus that will be required to build on the gains so far, sources said.
    Sources also said that “the government will focus on promoting manufacturing of goods and generating services imported the most by India to address the high imports. PM is of a vision that India needs to gradually reduce its dependence on imports and look at enhancing the manufacturing capacity.”
    The government is also looking at “more incentives to e planned for roll-out in the near future under the Atmanirbhar Bharat Abhiyan. The long-term vision here is to see how India can push rupee to be made an internationally accepted currency”, the source added.
    Apart from this, the government is considering more incentives for ‘Make in India’ and long-term policy measures such as performance linked incentive (PLI) schemes for more sectors, which too could be a part of the next stimulus to boost manufacturing & employment in the country,” the source explained.
    Earlier on Tuesday, speaking on the economic outlook at the India Energy Forum, Sitharaman expressed government’s confidence in the resilience of the economy with positive growth prospects in the next fiscal year.
    She said the economy is witnessing some “steady” signs of revival after the gross domestic product (GDP) contracted a record 23.9 percent in the first quarter of current financial year, mainly due to “firm lockdown” because the government put “lives before livelihood”. India imposed a 68-day nationwide hard lockdown from March 25 to check the spread of Covid-19 pandemic. Later it gradually opened up the economy in stages.
    Referring to the Purchasing Manager's Index (PMI) for manufacturing, Sitharaman said that the economic activities are picking up in the country as pandemic restrictions have been lifted and the government’s relief-cum-stimulus measures have started showing results. PMI for manufacturing in September surged an all-time high at 56.8, signifying expansion of economic activities.
    The finance minister said the PMI number is the highest since 2012 indicating that the economic revival is there. Sitharaman said a sustained economic revival is visible now, which could catapult the Indian economy among the fastest growing global economies in the next financial year even as the country’s GDP growth in 2020-21 could be near zero due to the hard lockdown that was reflected in 23.9 percent contraction in the June quarter.
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