After various agencies downgraded India’s growth outlook due to lockdown extension, PM Modi discussed a possible second economic stimulus with FM Nirmala Sitharaman today.
Businesses, industries and people suffering from the coronavirus-led lockdown may soon get another economic relief package from Prime Minister Narendra Modi-led government. After various agencies downgraded India’s growth outlook due to lockdown extension, Narendra Modi discussed a possible second economic stimulus with Finance Minister Nirmala Sitharaman today. He also reviewed the effect of coronavirus on the Indian economy. The discussion included pandemic hit sectors from small industries to the aviation sector, where millions of jobs are at stake, PTI reported. Immediately after the announcement of the first lockdown last month, thousands of migrant workers came on the streets due to mounting uncertainty.
Businesses have come to a standstill as markets have zero footfall amid lockdown. Despite the major contraction in the economic activities, the government had to extend the lockdown, given the rising cases of coronavirus in the country. However, the rating agencies including IMF, ICRA, etc showed that the Indian economy may have to face a contraction of up to 1 per cent in the current fiscal. Though the government has announced many relaxations in the economic activities from April 20, the situation still remains grim as the buyers will be locked down in their houses.
Meanwhile, Finance Minister Nirmala Sitharaman announced a mega economic relief package last month, that cost around Rs 1.7 lakh crore. The Ministry of Finance announced a Rs 50 lakh insurance per health worker. Daily wages under the MNREGA was also increased to Rs 202 a day from Rs 182, benefitting nearly 5 crore families; 80 crore poor people to get 5 kg wheat or rice and 1 kg of preferred pulses for free every month for the next three months under the Pradhan Mantri Garib Kalyan Ann Yojana and over 20 crores PM JAN Dhan Yojana women account-holders were to be given ex-gratia of Rs 500 per month for next three months.