India Sees Room For Fiscal, Monetary Boost to Avoid Default Wave

India has plenty of space to cut interest rates as well as offer a fiscal stimulus, the government’s principal economic adviser said, and the main goal is to ensure that the nation’s economy doesn’t seize up amid a shutdown to contain the coronavirus.

Policy makers’ immediate focus is ensuring Indians have cash in hand to buy essentials, Sanjeev Sanyal said in an interview in New Delhi on Friday. They are also aware that India faces “waves of default” if cash flows aren’t maintained, he said.