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Prime Minister Narendra Modi addressed the nation today, his third since the shutdown was announced.
New Delhi:
The mega economic package to counter the financial consequences of the coronavirus crisis announced tonight by Prime Minister Narendra Modi has been inspired by the one announced in the United Kingdom in March. The announcement of a Rs 20 lakh crore package, the details of which are yet to come, was made during a speech to the nation tonight, in which the Prime Minister also spoke of “4.0 lock”, indicating that he will have very different
The UK £ 30bn tax stimulus has distributed large chunks to the labor market and health system and was followed by other £ 330bn guaranteed loans to companies.
The sources said that the long-awaited economic package announced by the Prime Minister today will be on similar lines, paying wages for the companies and MSMEs (Micro, Small and Medium-sized Enterprises) that retained their workforce. The main sources said that it would be a comprehensive package for all sectors.
In his speech, the Prime Minister said: “The package will focus on land, work, liquidity and the law; it will help small businesses, workers and farmers. It will also focus on the well-being of migrant workers.” . It would adapt to various sections, including the artisan industry, MSMEs, the middle class and industries, among others, he added.
Finance Minister Nirmala Sitharaman, who heads the working group formed to study the economic consequences of the pandemic and provide a solution, will give the details of the package, the prime minister said.
The Rs 20 lakh crore package, which also includes the 1.7 lakh crore package announced in March, was one-tenth of the nation’s GDP and will provide new impetus for “self-sufficient India,” said the Prime Minister.
The nationwide blockade, now in its seventh week, is expected to greatly affect the economy, which has been slowing for months. Now, with industry on hold and revenues depleting, the fiscal position of both the Center and the states has become precarious.
The pressure has pushed states to demand an economic package and a larger share of revenue. The demand was repeatedly underlined at the meeting between the prime ministers and Prime Minister Modi yesterday.
Growth figures are expected to decrease as the year progresses. The World Bank has forecast that India will see growth of only 1.5-2.8 percent in its current financial year, below the 4.8-5.0 percent expected for the year just ended.
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