Prime Minister Narendra Modi on May 12 announced a stimulus package totalling Rs 20 lakh crore to rescue the economy reeling under the impact of coronavirus. This amounts to nearly 10 percent of India's GDP.
The Rs 20 lakh crore stimulus includes packages worth nearly Rs 7-8 lakh crore already announced by the Finance Ministry and the Reserve Bank of India (RBI).
Finance Minister Nirmala Sitharaman had announced a Rs 1.7 lakh crore package while RBI Governor Shaktikanta Das had announced liquidity support in two tranches in March and April amounting to over Rs 5 lakh crore.
"I am announcing an economic package of Rs 20 lakh crore, which is almost 10 percent of India's GDP, to help India become a self-reliant nation," PM Modi said in his fifth address to the nation since the coronavirus outbreak.
This economic package, he said, will focus on areas like land, labour, liquidity and law.
While PM Modi said the details of the package will be shared in due course he said it is time for us to do our bit for the street hawkers, daily wage workers, migrant labourers, fisherman, etc. and the stimulus package has special provisions for them.
"The crisis has made the nation realise the importance of these people in the local supply chain. Time has taught us that we have to realise the importance of local traders, craftsmen, and brands," he said.
He noted that only when the people of a country realise and promote local products will they get accepted as global brands.
The government was earlier considering a measured approach to deal with the situation despite mounting pressure from industries.
However, late last week it announced a 54 percent or nearly Rs 4.2 lakh crore increase in its borrowing target for FY21 to Rs 12 lakh crore providing it more wiggle room.Key highlights of PM Modi's address