NEW DELHI—The special economic package being designed by the Narendra Modi government to address the impact of the coronavirus on the Indian economy will incorporate a combination of fiscal and monetary policy measures, said NITI Aayog Vice Chairman Dr Rajeev Kumar, but declined to outline any specific measures that may be announced.
“Both the fiscal and monetary policies will have to play a role in tandem in order to address the significant impact of the coronavirus on the economy,” Dr Kumar told HuffPost India in an interview, underlining that only fiscal policy measures will not be sufficient but combining them with monetary policy measures could go some way in addressing the damage.
Prime Minister Narendra Modi has addressed the nation twice so far about the dangers of coronavirus and the importance of social distancing, but he hasn’t outlined any economic relief package that is on the cards, especially for the poor. On Tuesday, finance minister Nirmala Sitharaman, who is heading the Modi government’s economic task force to look into the impact of COVID-19, announced a slew of measures for extension of statutory and regulatory compliances.
“Both the fiscal and monetary policies will have to play a role in tandem in order to address the significant impact of the coronavirus on the economy,Rajiv Kumar, Vice Chairman, NITI Aayog
Kumar said over the phone that “the government and all its relevant departments and agencies are focused” on the importance of addressing the economic impact.
“They are well cognisant of this, seized of the matter and focusing on it to design and deliver a comprehensive package as soon as possible...as the finance minister has said yesterday in her speech, this will be delivered sooner rather than later. I think we should go by her assurance and feel confident that the government being seized of the matter will bring it out as soon as possible,” said Kumar.
When asked what kind of specific measures the government...