Thrust on Counter Cyclical Fiscal Policy in the Survey Most Reassuring – CII DG on Economic Survey

New Delhi: Economic Survey makes candid and convincing assessment of the Indian economy based on objective analysis, enriching content and credible policy direction to take the economy forward

The Economic Survey 2020-21 tabled in Parliament today makes a candid and convincing assessment of the Indian economy based on objective analysis, enriching content and credible policy direction to take the economy forward, according to Chandrajit Banerjee, Director General, CII. While striking an optimistic note, the Survey reaffirms that the worst is behind us and the economy would bounce back, to experience a resilient V shaped recovery after being hard hit by the Covid-19 pandemic. The availability of the vaccine and robust service sector recovery would further buttress the growth momentum.

Acknowledging that pursuing counter-cyclical fiscal policy boosts growth during economic downturns, the Survey findings are in concurrence with CII’s recommendation on having a higher deficit print, albeit within reasonable limits. This will result in faster growth and smaller deficits in the future.

The pandemic has rightfully brought back attention to the healthcare infrastructure of the country. “Covid-19 has reaffirmed our assessment that the healthcare infrastructure of the country needs greater attention and this has been corroborated in the Survey”, highlighted Mr Banerjee.

Based on the analysis, the Survey has delineated pragmatic policy suggestions for meeting the social and economic goal posts envisioned for the country. Mr. Banerjee said that CII is confident that the key perceptions and policy actions articulated in the Economic Survey would assume special significance during economic policy discourse in the coming times with some ideas finding a place in the Union Budget to be presented two days from now.

 

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