Gopinath for extending pandemic support

MUMBAI: IMF's Chief Economist Gita Gopinath has favoured the extension of the pandemic support measures, thrust on investment in infrastructure and expanding health sectors programmes like Ayushman Bharat, and a very credible divestment path for commercially viable companies.

The Indian government has provided a lot of schemes for small and medium enterprises, most of which is in the form of liquidity support, Gopinath told PTI on Tuesday.

"And you want to revisit it and see how effectively that is working and see whether additional support may need to be provided," she said. It would be a good time for banks and NBFCs to raise capital given the attractiveness of financing conditions at this point, she said.

"We have to also keep in mind that as these pandemic measures are lifted, there would very likely be an increase in non-performing loans,” she said.