SBI economists call for second round of economic stimulus

by Nidhi Bhati

The State Bank of India (SBI) economists have pitched for a second round of economic stimulus, as per a report in Financial Express. According to them, there is a weak linkage between economic recovery and surge in the equity market and hence the government must consider extending fiscal support to weak sectors. The economists also cautioned that banks now stand at risk of reporting higher non-performing assets (NPAs) after September 2020, once the six-month moratorium on loan repayment ends. They also believe that relief measures to boost agriculture will not be of much use as the share of agriculture in overall GDP is at 13.3 per cent and thus a rural led growth is unlikely to make a material difference to overall prospects.

References
1. https://www.financialexpress.com/economy/time-for-economic-stimulus-round-2-impacted-sectors-must-get-further-relief-says-sbi-research/2007564/