economy | IST

This is a marathon, stimulus to be unveiled over time: Sanjeev Sanyal

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India's Q2 gross domestic product (GDP) for the September quarter shrunk 7.5 percent, less than the 8.9 percent decline most analysts and economists had estimated. Principal Economic Adviser Sanjeev Sanyal said the lesser-than-expected contraction was not a complete surprise.

India's Q2 gross domestic product (GDP) for the September quarter shrunk 7.5 percent, less than the 8.9 percent decline most analysts and economists had estimated. Principal Economic Adviser Sanjeev Sanyal said the lesser-than-expected contraction was not a complete surprise.
“This is a still evolving situation but there had been indications that from end of August and into September there was some acceleration in growth that showed in all the high frequency data. So in that sense, this is not a complete surprise,” he said in an interview to CNBC-TV18.
“It is also becoming easier for us in the government to provide support because significant part of the economy is now being opened up,” he said.
On the government’s role in stimulating demand, Sanyal said, “Be adequately clear that all the support that is needed will be provided for the recovery. Now that we are out and the system is recovering, we are providing it a lot of support and I am quite sure that as this momentum builds up, we will continue to give it a push.”
“The important thing to remember is that we are not thinking of this as a sprint. This is a marathon, we will be spending money over a prolonged period of time,” he said.
“We will try to revive the investments particularly in government projects but also in the private sector,” he said. “There is no point in having demand coming back if we do not have capacity to meet those new demand,” he mentioned.
For entire discussion, watch video...
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