{"id":17982,"date":"2021-01-28T11:55:39","date_gmt":"2021-01-28T11:55:39","guid":{"rendered":"https:\/\/plyinsight.com\/?p=17982"},"modified":"2021-01-28T12:06:39","modified_gmt":"2021-01-28T12:06:39","slug":"focus-on-extending-covid19-help","status":"publish","type":"post","link":"https:\/\/plyinsight.com\/hi\/focus-on-extending-covid19-help\/","title":{"rendered":"Focus on extending Covid help"},"content":{"rendered":"

IMF\u2019s Chief Economist\u00a0Gita Gopinath\u00a0has favoured the extension of the pandemic support measures, thrust on investment in infrastructure and expanding health sectors programmes like Ayushman Bharat, and a credible divestment path for commercially viable firms.<\/p>\n

The government has provided a lot of schemes for small and medium enterprises, most of which is in the form of liquidity support, Gopinath said. \u201cAnd you want to revisit it and see how effectively that is working and see whether additional support may need to be provided,\u201d<\/p>\n

We have to also keep in mind that as these pandemic measures are lifted, there would very likely be an increase in non-performing loans. Even the RBI has projected that,\u201d Gopinath said.<\/p>\n

But there might also be a need for the capital support to be provided by the government for public sector enterprises. That has been long on the table which is to improve governance of public sector banks, she said. Observing that there is a need for more public infrastructure spending, she said that the government has expressed an intention to do that.<\/p>\n

\u201cThere are needs to make more public investment. That would be another area that would require thrust,\u201d she said, adding that health is another sector which needs renewed focus.<\/p>\n

Gopinath said there has to be progress made on the GST collections. There seems to be a gap with compliance which is an important area to fix.<\/p>\n

On Tuesday, the IMF projected 11.5 per cent growth for India in 2021. While this is attributable to the stronger-than-expected recovery, Gopinath said India still has some distance to go. The IMF chief economist said India moved quickly to put down one of the strictest lockdowns seen anywhere in the world and it stayed that way for a long time. This had an impact on the economy, including a very large contraction in the first quarter of the fiscal year.<\/p>\n

\u201cIn terms of overall policy support, India has provided a significant amount. It has tended to use more below-the-line measures than above-the-line measures. We still think that there is space for it to do some more,\u201d Gopinath said.<\/p>\n

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\"DUNA\"\u00a0 \u00a0\"Star\u00a0\u00a0 \u00a0\"Damodar<\/p>","protected":false},"excerpt":{"rendered":"

IMF\u2019s Chief Economist\u00a0Gita Gopinath\u00a0has favoured the extension of the pandemic support measures, thrust on investment in infrastructure and expanding health sectors programmes like Ayushman Bharat, and a credible divestment path for commercially viable firms. 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