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Covid-19 to have significant deflationary impact: CEA

city New Delhi covid-19 pandemic Government crisis
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NEW DELHI : Ruling out any impact of stimulus on the price situation, Chief Economic Advisor KV Subramanian on Thursday said the covid-19 pandemic has severely dented the demand for non-essential or discretionary goods, creating deflationary conditions.

He also said that a good part of the ₹20 lakh crore stimulus package is designed in a manner that the fiscal deficit remains under control. "COVID has a significant deflationary impact because demand especially for non-essential or discretionary goods and services will go down significantly.

Therefore, it is unlikely that there would be too much inflationary impact through fiscal deficit or stimulus package," Subramanian told PTI in an interview.

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India
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