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Another round of stimulus for the Indian economy: What are the next steps?


Top finance ministry officials have said another round of stimulus is possible, without elaborating on the size, timing or other details. ET asked economists what they’d look for in such an effort and how it can be funded. Gaurav Noronha & Kirtika Suneja look at the suggestions:


The economy is picking up, why is another stimulus needed

  • Recent recovery is bounceback from lockdown combined with festival spending

  • The first stimulus round has come to an end

  • Business confidence is still shaky

  • Recent moves on LTC, bonus insufficient to create demand

  • Demand may peter out after festival season ends

  • Despite pickup, economy to see deep contraction

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