Rs 9 lakh crore of total measures have already been undertaken, and there is space for another Rs 10.7 lakh crore of spending or support, which needs to be clarified.
Prime Minister Narendra Modi has announced a mega economic relief package worth Rs 20 lakh crore to make India a self-reliant nation amid the coronavirus-led crisis, however, the entire package is not a fresh push, as a large portion of it has already been delivered by the RBI and the government. PM Modi said this package is inclusive of the earlier packages announced by the government and RBI. This gives a window of further spending of nearly half of the amount that the Prime Minister has mentioned. Rs 9 lakh crore of total measures have already been undertaken, and there is space for another Rs 10.7 lakh crore of spending or support, which needs to be clarified, said a report by Barclays.
RBI package 1.0, which was announced in March, was worth Rs 6.5 lakh crore; RBI’s second package announced in April was worth another Rs 1 lakh crore; and, Finance Minister Nirmala Sitharaman had announced an economic package worth Rs 1.7 lakh crore. These proposed and delivered spends altogether sum up to Rs 9.3 lakh crore. The Reserve Bank of India and the central government offered these packages when businesses were at a standstill and people across the classes, especially the poor section, were struggling through the weak financial conditions.
However, in these times when individuals, businesses, and companies are struggling through financial crises and uncertainty mounted by the coronavirus pandemic, Rs 10.7 lakh crore is a big assurity, economists and experts said. PM Modi has assured that the new economic package is for all classes of the society and for all Indians and businesses.
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Meanwhile, Finance Minister Nirmala Sitharaman will address a press conference later today at 4 pm where she will likely give further details on how the economic relief package will be directed towards various sectors and fields. PM Modi yesterday said that the Finance Minister would explain the economic package in detail.