Will printing more money help revive Indian economy? All you need to know

Many prominent economists and industry leaders have called for additional money printing by the Reserve Bank of India to help boost expenditure during the second Covid-19 wave. However, there are several problems associated with additional money printing. Here is all you need to know.

The second wave of the Covid-19 pandemic has put immense pressure on the Indian economy and many prominent voices have urged the government to increase its expenditure and announce relief measures to tide over the crisis. Some experts and industry leaders suggest that increased expenditure and more relief measures can be achieved if the Reserve Bank of India (RBI) increasing printing currency. Some individuals have called for more cash printing including billionaire banker Uday Kotak. He said, "This is the time to expand the balance sheet of the government, duly supported by the RBI... for monetary expansion or printing of money.”