Prime Minister Narendra Modi announced an economic package of Rs 20 lakh crore yesterday amid Corona lockdown. This amount is almost 20% of the country’s GDP. The vast relief package announced by PM seems to fulfill the expectations of the industry. So far, a relief package of up to Rs 15 lakh crore was demanded by the Indian industry.
This economical package was then need of an hour and was demanded by the citizens for a long time. The Prime Minister addressed the country around 35 minutes at 8 pm on 12 May. The speech by prime minister emphasized the country’s self-reliance.
The industries say that this package will help in the revival of the economy affected by the Covid-19 pandemic and the restrictions imposed to curb it and give a new impetus to economic growth. The Indian government is eyeing companies exiting China. In such a situation, the government may also announce a particular concession to attract foreign investment.
According to various assessments, in the current situation, the country’s economic growth rate may go down by one percent or even less. In the conditions caused by Corona, market demand has been severely affected, and more than 120 million people are estimated to have lost their jobs. There might be several after-effects that may affect the citizens of India severely. Union Finance Minister Nirmala Sitharaman will address the nation today and will tell that in which sectors 20 lakh crore will get utilized and how much will get allocated to such industries.
In terms of percentage of GDP, it is more than at least six countries. These countries are South Korea, China, the UK, Italy, Spain, and France. The package announced by Germany (10.7 percent of GDP) is also almost equal to India. In contrast, countries like Sweden (12%), the US (13%) and Japan (21.1%) have higher economic package declared by the government than India.