Prime Minister Narendra Modi on Thursday talked to around top 50 officials from across ministries and the Niti Aayog about the progress of the Aatmanirbhar Bharat economic package and on further steps required to revive the economy, sources said.
People in the know of things also said that Finance Minister Nirmala Sitharaman was also present in the video conference.
Further, a separate meeting was also taken on Thursday by the Cabinet Secretary with all Secretaries on the implementation of measures announced under the package.
In May, the government had announced an economic package to support the economy amid the pandemic and the nationwide lockdown which brought economic activities to a grinding halt.
Along with measures to increase the flow of liquidity, the package also included several reform measures which would have more of a long-term impact.
The Reserve Bank of India also has announced several liquidity measures apart from the emergency rate cuts since March.
The meeting on economic revival by the Prime Minister also gains significance as concerns have been raised by several quarters that a sharp recovery, as anticipated by many, is unlikely and India’s GDP may witness a negative growth in the financial year 2020-21.
Several economists and global rating agencies are of the view that the measures, announced by both the government and the central bank are not enough to revive the economy as they address more of the supply-side constraints rather than demand support, which is the need of the hour.
Job losses across sectors have added to the economic woes.
Several states have off late extended lockdowns, raising concerns of further impact on the economy.
There are also expectations that the government may announce more steps in coming days on the economic front.
In this regard, several officials have made presentations on their respective areas, as to what work is being done and what new measures may be required going ahead.
The officials largely comprised from economic ministries such as Finance and Commerce.
The government is looking to have a medium-term strategy on reviving economic growth through a series of measures where it would act as a catalyst and facilitator to step up investments and demand.