Hindustan Unilever managing director Sanjiv Mehta said the country must ensure it does not get entrapped by stagflation and urged the government to accelerate front-loading the ₹7.5 lakh crore which the government had earmarked in the budget for the capital expenditure.

“The ₹7.5 lakh-crore which the government had earmarked in the budget for the capital expenditure, they should front-load it as much as possible so that it gives impetus to the economy during these tough times,” he said.

Stagflation refers to a recession-inflation situation in which the inflation rate is high, the economic growth rate slows, and unemployment remains steadily high.

“Inflation is certainly having an impact on consumption, and we must ensure that we do not get entrapped by stagflation. It would be a tightrope walk for the Reserve Bank of India. They will have to ensure that there is sufficient liquidity, and the growth is not constrained but at the same time, there is no runaway inflation,” said Mehta, adding that even before the Ukraine crisis, private consumption and private capex needed improvement and both to an extent are interlinked.