In an exclusive interaction with CNBC-TV18's Latha Venkatesh, the Chief Economic Adviser, Krishnamurthy Subramanian, said that the steps announced by RBI on Friday are very important and it will help bring stability. He further added that the government revenue may fall by up to one percent of GDP.
"GDP estimates will have to be changed multiple times given the uncertainty. Can work with 1 percent revenue impact on GDP," he explained.
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“Debt & fiscal deficit becomes an issue if growth stalls. We have to look at estimates in a dynamic and not in an absolute manner,” Subramanian added.
It's noteworthy that Reserve Bank of India Governor Shaktikanta Das on Friday announced a series of steps to help revive the Indian economy
, including cutting its reverse repo rate by 25 basis points to 3.75 percent even as it said it would launch long-term repo operations (TLTROs) worth Rs 50,000 crore to help non-banking financial companies.