The government has no plans to print currency notes to overcome the economic crisis faced by the country due to the outbreak of the coronavirus disease, union finance minister Nirmala Sitharaman confirmed.
She was asked a question by a member of the Lok Sabha about any such plans on Monday, to which Sitharaman replied “No Sir”. She has accepted that India’s Gross Domestic Product (GDP) has contracted due to the COVID-19 pandemic but added that the fundamentals of the economy remain strong. “The fundamentals of the economy remain strong as gradual scaling back of lockdowns, along with the astute support of Atmanirbhar Bharat Mission has placed the economy firmly on the path of recovery from the second half of FY 2020-21.”, Ms. Sitharaman said.
India’s real Gross Domestic Product (GDP) is estimated to have contracted by 7.3 percent during 2020-21, Sitharaman said in a written reply to Lok Sabha.
The government had announced a special economic and comprehensive package of Rs 29.87 lakh crore under AtmaNirbhar Bharat (ANB) to combat the impact of the pandemic, to revive economic growth, and to bolster employment during 2020-21, she said.
The Union Budget 2021-22, estimates India’s nominal GDP growth at 14.4 percent during the current financial year ending March 2022. The Minister also said that The Reserve Bank of India, in its latest Monetary Policy Committee (MPC) resolution of June 4, 2021, has projected India’s real GDP to grow at 9.5 percent in 2021-22, after accounting for the impact of the second wave, compared to its earlier projection of 10.5 percent.