The mega Rs 20 lakh crore stimulus package includes previously announced measures to save the lockdown-battered economy, and focuses on tax breaks for small businesses as well as incentives for domestic manufacturing.
Top UN economic experts have hailed as ”impressive” the Rs 20 lakh crore stimulus package, the largest so far among developing countries, announced by India to revive the country’s economy, which has been severely hit by the coronavirus-triggered lockdown.
Prime Minister Narendra Modi on Tuesday announced massive new financial incentives on top of the previously announced packages for a combined stimulus of Rs 20 lakh crore (USD 260 billion).
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While launching the World Economic Situation and Prospect (WESP) report update on Wednesday, Chief of the Global Economic Monitoring Branch Hamid Rashid told reporters in response to a question that the stimulus package announced by the Indian government on Tuesday ”is a very welcome development.”
He said the Rs 20 lakh crore package, which is 10 per cent of India’s GDP is the ‘largest so far in the developing countries because most developing countries have been rolling out stimulus packages that are between 0.5 per cent and 1 per cent of the GDP.
”India’s stimulus packages are very large. And also India has the domestic financial market and the large capacity to implement that large stimulus package,” he said, adding that impact of the package would depend on the design of the stimulus.
Source: Financial Express
