The Indian economy has ''some bright spots and a number of very dark stains'' and the government should target its spending ''carefully',' so that there are no huge deficits, stated economist and former RBI Governor Raghuram Rajan.
Rajan stated that the government needs to do more to prevent a K-shaped recovery of the economy hit by the coronavirus pandemic.
A K-shaped recovery will reflect a situation where technology and large capital firms recover at a far faster rate than small businesses.
''My greater worry about the economy is the scarring to the middle class, the small and medium sector. One symptom of all this is weak consumption growth, especially for mass consumption goods,'' Rajan told
Rajan also added that as always, the economy has some bright spots and a number of very dark stains.
''The bright spots are the health of large firms, the roaring business the IT and IT-enabled sectors are doing, including the emergence of unicorns in a number of areas, and the strength of some parts of the financial sector,'' he said.
(With inputs from PTI)