International Monetary Fund (IMF) has lauded Prime Minister Narendra Modi-led government's response to the ongoing coronavirus pandemic by calling it a 'strong' response by the authorities to the crisis. IMF Communications Director Gerry Rice, in a press conference, has said that the financial response in India provides much-needed support to various sectors.
"India's economic relief package has included fiscal stimulus, monetary easing and liquidity, regulatory measures for the financial sector and for borrowers and provides much-needed support for businesses and agriculture and it expands to vulnerable households," Rice said.
He further said that the priority should continue to be the swift implementation of this response. "Given the crisis, the priority continues to be swift implementation of this response effort to the crisis in particular. Although medium-term fiscal consolidation remains important, further fiscal stimulus can be deployed as needed to support the poor," he added.
"Given the sharp slowdown in domestic and global activity, there may be scope for additional monitory easing as well to support growth," the IMF Communication Director said on the subject of India's way ahead. "All of this building on the recent government measures, the easing the liquidity, the financial sector measures taken by the authorities form a part of their strong response to the crisis in India."
The IMF further stated that due to the economic slowdown in global and domestic demand, there will be an impact on the Indian economy, like that of several other countries.
"There will be an update on India's economic forecast in the world economic outlook coming on June 24. Like most countries in the world, given the sharp slowdown in global and domestic demand from the pandemic, and the lockdown policies. We are expecting that there will be an impact on the Indian economy," the IMF spokesperson signed off with.
Coronavirus cases in India have notched up to 216,000 while the death toll has surged past 6,000.