The fiscal stimulus worth INR 1.45 lack crore rolled out last week will help reverse the Indian economic slowdown and boost consumption, leading to a gross domestic product (GDP) of 7.5% by the second half of the financial year 2020, Niti Aayog vice-chairman Rajiv Kumar said on Monday.
Indian economy slowed to 5% in the first quarter (April to June).
Key quotes
The stimulus will strongly rekindle investors’ animal spirits. This bold step has laid the foundation for taking the economy on to a higher, 8% plus growth trajectory.
Consumption is intrinsically linked to the rate of growth of GDP and to future expectations. Both these will be strongly reinforced by the package announced on Friday.
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