New Delhi, India: India’s Rs 20 lakh crore COVID relief package is one of the largest among the world announced on Tuesday, May 12, 2020, by Prime Minister Narendra Modi.
PM also announced previously taken measures to save the COVID impacted economy by focusing on breaks of taxes for small-scale businesses and providing incentives to domestic manufacturing units.
This combined relief package works out to roughly 10% of the country’s GDP, making it the world’s most substantial relief package after the financial package of the United States which announced 13% of its GDP, and by Japan which is around 21% of its GDP.
Break of India’s Mega Stimulus Package
20 Lakh crore package included Rs 1.7 Lakh crore free food grains for poor and cash to elderly and poor women announced in March, as well as Reserve Bank, cuts in Liquidity and Interest rate. RBI’s cut in liquidity measures as well as in interest rate totaled to 3.2% of the GDP (around 6.5 Lakh crore)
PM Modi said in his third address to the nation against the global coronavirus disease, ” A special relief package is announced for India’s self-dependent. This relief package has taken together with early announcements to tune Rs 20 Lakh crore, which is about 10% of India’s GDP.”
Most activities in the country were on a standstill after the announcement of the government imposing a 21 days nationwide lockdown to stop the spread of Covid-19. The lockdown has been extended twice to May 17, with some relaxation by permitting a few economic activities to operate under rules and regulations.
Industries to Avail the Relief Package
The package will be focusing on Land, labor, laws, and liquidity. It will also cater to cottage industries, MSMEs, middle class, industries, and laborers along with some relaxation from the tax for micro, small and medium businesses and providing incentives to boost the domestic manufacturing and attracting investments at the same time.
Easy access to land was also a form of a package to lure industries leaving china.