Union Finance Minister Nirmala Sithraman could divulge details about the mega Rs 20 lakh crore economic stimulus announced by Prime Minister Narendra Modi on Tuesday. The package is equivalent to 10 per cent of India's Gross Domestic Product. The FM willreveal details about the sectors that'll primarily benefit from the stimulus package at 4 PM today.
"Starting tomorrow, over the next few days, the Finance Minister will give you detailed information about this economic package inspired by the 'Self-reliant India campaign'," PM Modi had said in his televised address to the nation, adding that various sections and those linked to economic system would get support and strength of Rs 20 lakh crore.
Indian economy has acquired strength in its various dimensions. Now, we can confidently engage with the world. We aim at overall transformation & not incremental changes. We shall convert the pandemic challenge into an opportunity. #AatmanirbharBharat will integrate not isolate.— Nirmala Sitharaman (@nsitharaman) May 12, 2020
Though details are not out as yet, experts say the package could include some previous economic measures taken by the government and the RBI. The central government had lowered policy rate by 75 bps to 4.4 per cent in March and had infused liquidity to the tune of 3.1 per cent of GDP between February and April. The government had also announced fiscal package amounting to 0.8 per cent of GDP (Rs 1.7 lakh crore) in March.
Appreciating PM Modi's Aatma Nirbhar Bharat package, Sitharaman on Tuesday said India needed to make "local our mantra". "Every big product, branded product, were local sometime. PM Modi is confident we can do this," she added. On PM Modi's call for a self-reliant India, Niramala Sitharaman said the country had everything that it takes for achieving it, and that it indeed can attain the goal.
Sitharaman said the Aatma Nirbhar Bharat mission did not imply "isolationism or becoming exclusionist". It means India will need to build capacities, skill its people and compete globally, she said. "We'll build the local. After all, every global brand began with their local strength. We shall integrate with GVCs," added the FM.
Prime Minister Modi in his speech said the package would give a new impetus to the development journey of the country in 2020 and a new direction to the self-reliant India campaign. Hinting on the focus of the package, PM Modi said: "In order to prove the resolve of a self-reliant India, land, labor, liquidity and laws all have been emphasised in this package."
Notably, the mega stimulus package is among the most substantial in the world after the financial packages announced by the United States, which is 13 per cent of its GDP, and by Japan, which is 21 per cent of its GDP.