India has more scope for policy support despite limited fiscal space: IMF

Says the country's measures are tilted towards 'below-the-line' support such as food subsidy and other measures, rather than direct fiscal spending

The stimulus measures taken by India are substantial, but there is more scope for such measures even after considering the limited fiscal space, according to senior officials of the International Monetary Fund (IMF).  

India’s measures are more tilted towards ‘below-the-line’ support such as food subsidy and other policy measures, rather than direct fiscal spending. In the Rs 20 trillion package announced by the government, roughly about Rs 2 trillion is direct monetary support, while the rest are in the form of policy measures and enhancements of guarantees and liquidity measures. Since then, the government has also increased its food security