Cautioning against any complacency over the Indian economy being ‘single bright spot’ in a volatile world, a top Finance Ministry official on Monday said the key challenge for the Government is to revive demand and push growth.
Pitching for an investment-driven demand revival, the Department of Economic Affairs Secretary Shaktikanta Das said Government is not looking at any fiscal stimulus to effect this revival in demand due to resource constraints.
“The biggest challenge before us now is to ensure revival of demand in the domestic market in the context of different uncertainties world is showing,” Das said at an event. He made it clear that the revival will not be through fiscal expansion, and the Government wants it to be ‘investment driven’.
The remarks come a day before RBI announces its latest monetary policy review, with Governor Raghuram Rajan being under tremendous pressure to cut rates to stimulate the GDP growth, which dipped to 7 per cent in the June quarter.
Das said the Government is committed to providing enabling environment for the investments to come and the investment decisions get actualised quickly through its measures on ease of doing business.