Representative Image
Representative Image

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.

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Free Press Journal