Prime minister Narendra Modi earlier announces a mega package of Rs. 20 lakh crore for relief measures for the Indian economy to recover from the after effects of the lockdown. The fund emphases on incentives for domestic manufacturing and tax break for smaller businesses. The entire package comes to about 10% of Indian GDP.
The extensive package happens to be one of the most significant ones after Japan and the United States, who have announced financial packages for 21% and 13% of their GDP, respectively. The PM said that this package would focus on labour, land, liquidity, and laws.
It will help different sectors, the middle class, cottage industry, MSMEs, industries, and labourers. The entire 20 lakh crore financial package comprises of Rs. 1.7 lakh crore package that was used to provide cash and free wheat, rice and pulses to the elderly, farmers, and poor women over a period of three months.
This package was announced in the month of March. The government data reveals that under the Rs 1.7 lakh crore package, Rs. 34,800 crore financial assistance was given to 39 crore beneficiaries through digital payment infrastructure.
Also included in this package are RBI’s interest rate cuts and liquidity measures used for the lockdown period, which came to about 6.5 lakh crore. The March stimulus was 0.8% of Indian GDP, and the RBI’s liquidity boosting techniques and cuts in rates of interest charged came to about 3.2%.
Union Finance Minister Nirmala Sitharaman announced the break-up of the Rs. 20 lakh crore booster in 5 press conferences. She revealed that the entire amount was divided into 5 tranches. The first part of the economic inducement was worth Rs. 5,94,000 crore, the second part was worth Rs 3,10,000 crore, the third part was valued at 1,50,000 crore while the fourth and the fifth tranches together were valued at Rs 48,100 crore.