India’s stimulus 3.0 supportive for growth, fiscal impact unclear: Fitch Solutions

New Delhi: Fitch Solutions on Monday said the schemes recently announced by the Centre to boost the employment, credit and manufacturing sectors would be supportive to India’s economic rebound over the coming quarters, however, the actual impact on public finances is difficult to ascertain.

“While many of these schemes should be supportive to India’s economic rebound over the coming quarters, the actual impact on public finances is difficult to ascertain. For example, the PLIs (Production-Linked Incentive) will span across a five-year period and their fiscal impact will likely only be seen from FY2021/22 onward,” an official statement from Fitch Solutions stated.