The country’s economy is in recovery mode but needs policy support to achieve full recovery and robust growth, government’s Chief Economic Advisor Arvind Subramanian said here on Monday.
“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, implementation of what we have in the budget and measures to boost private investment and kick-start all these stalled projects,” Subramanian said.
“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 said. Answering questions at a press conference held here in the backdrop of completion of one year of the Modi’s government,
The Chief Economic Adviser 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. We need to find ways of relieving the stress on rural incomes.”
Subramanian said the rate of reduction of poverty during 2006 to 2011 (when UPA was in power) was the fastest ever due to GDP growth.