INDIA has no plan to print currency notes to overcome the current economic crisis triggered by the Covid-19 pandemic, finance minister Nirmala Sitharaman said on Monday (26).
Many economists and experts have suggested the government to print more currency notes to support the economy that has been hit hard by the spread of Covid-19.
India's real Gross Domestic Product (GDP) is estimated to have contracted by 7.3 per cent during 2020-21, Sitharaman informed the parliament.
"The fundamentals of the economy remain strong as gradual scaling back of lockdowns, along with the astute support of Atmanirbhar Bharat (ANB) Mission has placed the economy firmly on the path of recovery from the second half of FY (financial year) 2020-21," she said.
The government had announced a special economic and comprehensive package of Rs 29.87 trillion (£291bn) under the ANB scheme to combat the impact of the pandemic, to revive economic growth and boost employment during 2020-21, she said.
She further said that the impact of the second Covid-19 wave is seen muted due to containment measures and rapid upscaling of the vaccination drive.
The Reserve Bank of India (RBI), in its latest Monetary Policy Committee (MPC) resolution of June 4, adjusted its forecast for India’s real GDP growth at 9.5 per cent in 2021-22, after factoring the impact of the second coronavirus wave.
The central bank had earlier forecast the GDP growth at 10.5 per cent.
Taylor Jones, Vinit Thakkar and Kyran Jones join forces to launch THG Indiagetty images
Taylor Jones and Vinit Thakkar come together to launch THG India getty images