The Centre is worried about rising inflation accompanying the expected rebound in growth as the second wave of the coronavirus recedes and the states unlock themselves.
Principal economic adviser Sanjeev Sanyal on Thursday said rather than rushing in and announcing a bunch of new measures, it is more sensible to watch and act quickly based on the situation.
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“We need to watch carefully what the data is saying rather than pre-judge how the economy will behave from here on,” Sanyal said at an event organised by the Merchant Chamber of Commerce.
“While we continue doing all the good things that were said in the budget and continue to support demand, we need to be very careful of the secondary impact of inflation,” Sanyal said.