India made a capex bet during covid. It worked: Arvind Virmani

News Snapshot:

New Delhi: The federal strategy to boost capital expenditure amid the covid pandemic has created a multiplier effect on economic growth earlier than expected, a top government economist said, pointing to growing expectations of GDP growth surpassing projections this fiscal year. “Capital expenditure has a multiplier effect of 2.45 compared to 1 for revenue expenditure or subsidies," said Niti Aayog member Arvind Virmani, also a former chief economic advisor in the finance ministry. “That has given a big boost to growth... capital expenditure has been going up in the last two years and it has actually worked," Virmani said in...