Growth needed for recovery will take time infra stimulus required Experts

    Kolkata, Sep 29 (PTI) The growth needed for recovery
of the economy post the pandemic will take some time and the
government should provide stimulus to the infrastructure
sector of the country, experts said on Tuesday.
    Speaking at a webinar organised by BCCI, Sajjid Z
Chinoy, the chief Indian economist for J P Morgan said that
the COVID-19 crisis has dealt a permanent shock to the people
and households have reduced consumption and turned savers.
    There is need for fiscal stability after COVID-19 and
growth in the economy will be gradual, he said.
    The private sector will recover gradually, Chinoy said
adding that there is need for infrastructure stimulus.
    "The infrastructure stimulus can be funded by asset
sales by the government. A minimum of seven per cent growth is
required for medium term growth in view of the high debt-GDP
ratio of the country", he said.
    The goods sector will recover faster than the services
sector which will take time.
    "The main prerequisite for a good growth is to ward
off the virus", he added.
    Group chief economic advisor of SBI, Soumya Kanti
Ghosh said there is a need for creating a fund for the
infrastructure sector.
    "This fund will support the health infrastructure and
capital infusion to develop financial institutions", he said.
    According to him, RBI has been able to stabilise the
market through a series of policy measures and policies had
been by and large discretionary in nature. PTI dc
KK KK

(This story has not been edited by THE WEEK and is auto-generated from PTI)