India needs to release the next round of economic stimulus package directed towards infrastructure, says NITI Aayog Chairman Rajiv Kumar, according to media sources.
In a recent webinar held by the Public Affairs Forum of India, Kumar said that infrastructure projects are easy to be executed and can sustain the economic recovery.
He stated that infusing money towards infrastructure projects will have a multiplier effect and can sustain growth, a better measure than helicopter money. Infrastructure with a short development duration could facilitate quick capital spending. He gave the example of railway station development which promotes economic growth and can be monitored on a real time basis.
Recently, India’s Finance Minister, Nirmala Sitharaman said the government would announce more stimulus packages to revive the economy. RBI Governor, Shaktikanta Das, said new innovative measure to thrust the economic recovery will be announced, in sync with the fiscal policy. The central bank is trying to boost liquidity and aid the recovery.
Market participants of steel and non-ferrous metals industry told Davis Index that with low infrastructure activities, demand for metals is not picking-up. Galvanizer’s rued about low orders in the recent months and steel demand is rising on the back of auto sector and not infrastructure. They hoped India would follow China where infrastructural boost has led to its economy growing at a much faster pace.