The coronavirus outbreak has ravaged the Indian economy and the government has a tough task on its hands as it prepares to deal with the economic repercussions post-lockdown.
In an interview with CNN-News18, Chief Economic Adviser KV Subramanian stressed on the need to take a flexible approach as the current situation is unlike anything seen before.
"All of us - policy makers and analysts - have to continually recalibrate as the data comes in because unlike an episode like global financial crisis, this is a health phenomenon interacting with economy," he said.
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The SMEs, the growth engine of the economy, are in dire state and need special attention from the government.
Subramanian said their problems are being taken care of.
"Package is being worked on to ensure that SMEs, which are a significant contributor to employment, their fortunes don’t nosedive significantly. We are working on providing them significant liquidity and thereby taking care of their cash flow needs," he said.
On major policy decisions in the pipeline, he said: "It is a very good opportunity for us to focus on some of the reforms that are required for improving the cost of doing business. Some countries have come up with a separate Budget and other countries a stimulus package. There is enough variability in that. I care about whether the action happens in spirit."
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