(FE)
Finance minister Nirmala Sitharaman on exhorted corporate India to enhance its risk appetite and undertake expansion to supplement the government’s efforts to stimulate growth. The demand side of the Covid-hit economy is now able to “manifest itself”, she said at a CII event, indicating that the companies that ramp up capacity now will be able to cash in on the resurgence in consumption that was visible in the build-up to Diwali.
In certain cases, supply bottlenecks weighed down consumption, she said, highlighting how demand and supply sides are closely interlinked in a real economy. For instance, car sales could have been higher had there been no chip shortage, she said. Hence the criticism that the government was rolling out mostly supply-side relief measures and ignoring the demand side in the wake of the pandemic is misplaced, she hinted.
