India must start its road to economic recovery with aggressive spending

Well-executed policy measures will help meet the challenge of the coronavirus pandemic.

At the beginning of 2021, when S&P Global Ratings forecast Indian gross domestic product growth at 11% for the coming financial year, the number looked eminently achievable. Last month, the Goods and Services Tax--a good barometer of economy activity--hit 1.41 trillion rupees ($19.1 billion), its highest ever monthly collection. Indeed, it’s been higher than the benchmark Rs. 1 trillion for seven consecutive months and higher than the same month for the last year for eight consecutive months.

India’s international merchandise trade reached $34 billion in March, the highest ever, and stayed over $30 billion in April. Many short-term economic