Extent of damage clearer, stage set for second stimulus

Given the first quarter numbers, experts say GDP looks set to record near double-digit contraction during FY21, down from an average of around -5 per cent projected earlier.

WITH THE FIRST official estimates of GDP data for April-June revealing the extent of damage the pandemic and the lockdown have inflicted on the economy, policy experts working closely with the government suggest it is time the finance ministry quickly announced a second round of fiscal stimulus targeted at the poor.

The urgency also stems from the RBI’s assessment that initial greenshoots visible in May-June had reversed in July and August, and that it…