Fiscal stimulus, lower interest rate needed for 7% growth rate: Panagriya

India will need fiscal stimulus, lower interest rates, faster bank recapitalisation and privatisation of some PSUs to return to 7 per cent growth rate, former Niti Aayog vice chairman Arvind Panagariya said on Monday.

Addressing a virtual event organised by AIMA, Panagariya further said the country lost nearly $125 billion in the April-June period due to the Covid-19 pandemic.

"Economy will return to a 7 per cent plus growth rate (in post Covid-19 period). For that to happen, I will pitch for a lower interest rate by the RBI.

"We will need some fiscal stimulus. We will have to go