Second wave could trigger greater economic uncertainty: Niti Aayog Vice Chairman

Niti Aayog Vice-Chairman Rajiv Kumar on Sunday said that the country needs to prepare for "greater uncertainty" in both consumer and investor sentiments given the second wave of COVID-19. The government will respond with fiscal measures as and when required, he added.

While acknowledging that the present situation is more difficult than previously, Kumar expressed hope that the country's economy will grow by 11 per cent in this fiscal year.

"Apart from their direct impact on some sectors like the services sector, the second wave will increase the uncertainty in the economic environment, which can have wider indirect effects on economic activities. So, we need to prepare for greater uncertainty, both in consumer and investor sentiments," Mr Kumar said

Responding to queries on whether the government is considering fresh fiscal measures, he said, "As you have seen from RBI's response, the expansionary policy stance has been continued and I am sure the government will respond with necessary fiscal measures also, as and when it is necessary."

In its latest review, the RBI had projected a growth rate of 10.5 per cent for the current financial year while the Economic Survey tabled in the parliament estimated 11 per cent growth.