A Rs 20 lakh crore economic package did lift sentiment, but as the five-part plan was unveiled it fell woefully short on substance.
The present crisis while often compared to the Global Financial Crisis of 2008-09 is remarkably different in origin and magnitude. Before GFC, the fundamentals of the economy preceding the crisis were strong, so a quick intervention with the Centre’s fiscal deficit shooting up from 2.5 percent to 6 percent worked to minimise the damage.
In contrast, this time the Indian economy was already on a very slow lane when hit by the pandemic and while different estimates are doing the rounds, there is a substantial output loss which will have to be absorbed, having varied impact on different sectors.
A Rs 20 lakh crore economic package did lift sentiment, but as the five-part plan was unveiled it fell woefully short on substance. Where does that leave the market and investors? Moneycontrol's Sakshi Batra explains in this edition of 3-Point Analysis.
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First Published on May 18, 2020 09:37 pm