The International Monetary Fund or IMF has highlighted that there is a need for another stimulus in India, especially expenditures on health, food and income support for vulnerable households, and support for businesses in view of the COVID-19 pandemic, Gerry Rice, Director of Communications Department IMF, stated in a virtual news conference. He also noted that the IMF supports monetary easing and liquidity and regulatory measures for the financial sector and borrowers that have taken place and that further fiscal stimulus is warranted, especially expenditures on health, food and income support for vulnerable households, and support for businesses.
The large contraction in economic activity reflected broad-based weaknesses in industries on services with construction, manufacturing, hotels, and transportation, sectors suffering the most. The near-term growth outlook continues to be clouded by the global and domestic slowdown and uncertainties from the pandemic with significant downside risks. He stated that the impact of the pandemic is significant in Indian on development and on poverty. Given the unprecedented shock, the immediate priority is a coordinated policy response to fight the virus. The IMF supports the government's responses to the pandemic, including fiscal stimulus with a focus on low-income workers and households.
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