India emerges as 'positive spot' due to policy responses, says ex-CEA

India has emerged as a positive spot in the world economy, due to the well-designed policy responses that were implemented during the COVID crisis, Krishnamurthy Subramanian said

India has emerged as a positive spot in the world economy, due to the well-designed policy responses that were implemented during the COVID crisis, Krishnamurthy Subramanian, Executive Director (India)- International Monetary Fund Designate said on Tuesday.

He was addressing All India Services, Central Civil Services, and Military Engineer Services Officers at Dr MCR HRD Institute of Telangana here, an official release said.

The former Chief economic Advisor said the policy response of the Centre addressed supply side disruptions, by allowing movement of essential commodities even during the lockdown, as any disruptions in the supply chain would have made it extremely difficult to kick-start the economy, once again.

Analysing the COVID policy response, Subramanian said as the Indian economy emerges from the COVID crisis, it is far more resilient than it was at the time of the earlier crisis.

India is poised to enter a decade of growth at over seven per cent, which was in line with the IMF forecast, he said.

On the demand side, he said that targeted schemes were introduced such as the 'PM Gareeb Kalyan Yojana,' which provided free ration to 80 crore poor people, by utilising the stocks with Food Corporation of India.

In order to address the credit needs of the MSME sector and the urban poor, an Emergency Credit Line Guarantee Scheme, was introduced, in which the government provided guarantees for bank lending, the release quoted Subramanian as saying.

According to him, India followed a unique economic path of introducing supply-side measures coupled with targeted demand-side stimulus.