Chief economic adviser KV Subramanian said India’s gross domestic product (GDP) will contract in the first quarter, but is likely to grow 2% for the full financial year and that a stimulus is expected “soon”. But he cautioned against demands for government support similar to that provided by other nations as the cost would be too high.
“One of the first things that anybody learns in economics is that there is no free lunch,” he told ET in an interview. “If you are going to monetise (the deficit), that will have some impact on macro fundamentals… We cannot pretend to do policy as if there are no costs.” Read More…
