New Delhi: The negative impact of the coronavirus outbreak on the economy will be balanced to "a very large extent" by the decline in global oil prices, a senior government official said.
The official further said he expects the economy to go on an upward trajectory in 2020-21, adding that a degree of fiscal stimulus may also be warranted to boost growth.
"We had expected that the economy had bottomed out in the third quarter of fiscal 2019-20 and the last quarter of current fiscal will see an improvement, followed by further improvement in the fiscal 2020-21.
"However, there is no denying the fact that the Covid-19's impact on the global economy will be significant. This is bound to affect Indian economic prospect as well," he said.
On the other hand, a very bright silver lining has been provided by the collapse of oil prices, he added.