Chief Economic Advisor Arvind Subramanian on Tuesday said the Indian economy is in recovery mode.
“There are some signs that it’s picking up. But it’s really important that in the short-run, the economy needs policy support to boost consumption through cheaper financing, through public investment,mplementation of what we have in the budget and measures to boost private investment and kick-start all these stalled projects,” said Subramanian.
“So, if these things happen over the next few months, I think you can reasonably expect economic activity and growth to pick up even more,” he added.
Responding to a media query, Subramanian said: “To clear this backlog, which is very important for reviving private investment, I think we need mechanisms to kickstart these stalled projects.”
Subramanian said India has not done as badly in terms of generating poverty reduction and employment growth in the last few years.
The Chief Economic Advisor further said the real reason to worry about is the monsoon and what impact it will have on rural incomes and inflation.
“If we can release the stocks on time, use our buffer well, I think that is more manageable. I think when it comes to rural incomes, I do think we need to find ways of relieving the stress on rural incomes,” he added. (ANI)