New Delhi – The government has no plans to print more currency notes to alleviate the financial crisis caused by the Coronavirus, Finance Minister Nirmala Sitharaman said. The finance minister made this revelation while answering a question in the Lok Sabha. Stating that the fundamentals of the Indian economy are powerful, Finance Minister Sitharaman assured the country on this front. She also said that strong efforts are being made to revive the economy through the Atmanirbhar Bharat campaign.
The Coronavirus outbreak has had a devastating effect on the global economy, with even the developed economies facing a crisis. India is no exception. Because of the Coronavirus stagnation, India’s economy contracted by 7.3% in the 2020-21 fiscal year, Sitharaman told the Lok Sabha. But the foundation of the Indian economy is strong. Sitharaman pointed out that the process of withdrawing the lockdown has started, and this is having a positive impact on the economy. She also said that under the Atmanirbhar Bharat campaign, efforts are being made to revive the economy by giving importance to domestic production. But the government has no plans to print more currency notes to alleviate the financial crisis, Sitharaman said.
Some countries have tried to avoid the economic crisis caused by the Coronavirus by printing more and more currency notes. This can have severe consequences for financial stability. Although such measures have had some temporary benefits, they could pose a new crisis for the country in the future. India will not face an economic crisis of this nature. Sitharaman hinted in the Lok Sabha that India is facing this challenge by observing financial discipline.
A package of about Rs 29.87 trillion has been announced for the Atmanirbhar Bharat Yojana. Through this comprehensive financial provision, the government has tried to reduce the severity of adverse effects of the Coronavirus epidemic, Sitharaman added. In the 2021 budget, the central government had decided to boost the economy by increasing capital expenditure by about 34.5% and spending on health facilities by 137%, Sitharaman said.
Meanwhile, the dwindling demand after the Coronavirus outbreak has emerged as the biggest problem faced by all countries, including India. That is why, efforts to increase the demand are of paramount importance. Economists are pointing out that the Indian economy will pick up only once demand picks up. Economists say as demand picks up, the manufacturing and services sectors gain momentum, boosting job creation and only then does the economy recovers.
Economists say that with the decline of the Coronavirus pandemic, the Indian economy is showing a positive trend, which is very reassuring. In particular, the increase in foreign direct investment (FDI) in India has further enhanced the credibility of the Indian economy. Therefore, analysts claim that even though the current situation is challenging, the performance of the Indian economy will be strong in the coming times.