PM Modi announces USD 265 billion fiscal stimulus, second largest in Asia
May 12, 2020
New Delhi [India], May 12 : Prime Minister Narendra Modi on Tuesday announced USD 265 billion fiscal stimulus to deal with COVID-19 situation in the country. The package is the second largest in Asia after Japan.
"I announce a special economic package today. This will play an important role in the 'Atmanirbhar Bharat Abhiyan.' The announcements made by the government over COVID, decisions of RBI and today's package totals to Rs 20 lakh crore (USD 265 billion). This is 10 per cent of India's GDP," the Prime Minister said in his address to the nation.
"This economic package is for our small-scale industries, MSMEs, which are the means of livelihood of crores of people and is the strong base of our resolve for self-reliant India. To prove the resolve of self-reliant India, the emphasis has been given on land, labour, liquidity and laws, in this package," he said.
Prime Minister Modi said the "economic package is for the country's workers, farmers, who are working hard day and night for the countrymen in every season. This economic package is for the middle class of our country, who pays tax honestly and contributes to the development of the country."
While most of the countries struggling with the coronavirus crisis have focused on financial packages only, India has gone much further in its efforts to revive the economy by effectively containing the virus as well and its impact on the people's livelihood.
When other nations are being reactive in their response to COVID, India under the leadership of Prime Minister Modi is being proactive -- going ahead with reforms for future-proofing India.
India's package is not trickle down but empowers one and all. There is one great focus on labour, hawkers, street vendors, etc., who tend to always get neglected. India is ushering in reforms, improving governance systems and further liberalising its economy.
Prime Minister Modi is drawing from his personal experience of disaster management, recovery and rehabilitation post-Kutch earthquake in 2001. If the Kutch story is a reflection of his abilities to perform in adversity, the India story will truly make a grand story.
Modi has given a clarion call to create a self-reliant India. But this call for self-reliance is very different from the isolationist and protectionist self-reliance movements across the world.
Self-reliance in Prime Minister Modi's vision for India is neither exclusionary nor isolationist. There is a specific talk of improving efficiency, competing with the world as well as helping the world.
