PM Narendra Modi raises stimulus size to 10% of GDPMay 13, 2020
Prime Minister Narendra Modi on Tuesday said the government would unveil a Rs 20 lakh crore package to help nurse the economy back to health and also unleash a new set of reforms focussed on land, labour, liquidity and legal frameworks that would power India’s push for self-reliance.
Addressing the nation a day after he held detailed deliberations with chief ministers and days before Lockdown 3 ends, the PM said the mega package would be announced over the coming days by finance minister Nirmala Sitharaman even as he strongly identified the theme of “atmanirbhar Bharat (self-reliant India)” that he said wouldn’t be a self-absorbed vision but would rather make the country a part of global supply chains — seen as part of the overall strategy to attract foreign companies planning to shift from China.
Modi said the package, which includes measures already announced by the Reserve Bank of India (RBI) and the finance ministry, would be equal to 10% of the country’s gross domestic product (GDP). The RBI had announced support equal to 3.2% of GDP and the Garib Kalyan Yojana unveiled by Sitharaman on March 26 accounted for 0.8% of GDP.
Full text: PM Modi’s address to nation on Covid-19
The PM’s speech included a promise that new reforms wouldn’t ignore migrant labour and those whose livelihoods had been hit hard by Covid-19 and a call to be “vocal for local” .
There was a specific reference to “redi walas and thela walas (street vendors)”, part of the flow of migrants leaving cities in droves in the face of the pandemic’s economic impact, along with references to cottage industry, MSME, middle class, industries and other sectors.
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Economy doesn’t need incremental steps but a quantum jump: PM Modi
Outlining the need for bold steps, the PM said the economy did not need incremental steps but a quantum jump and added this was one of the “five pillars” of a self-reliant India. The others are infrastructure, a tech-driven system that delivers on the dreams of a modern India, demography that is vibrant and demand that is fed by supply chains capable of meeting the needs of a growing nation. He added that this includeed a rational tax system.
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Aware that the unprecedented lockdown had hurt people’s earnings,Modi sought to buoy spirits by saying though the threat was unparalleled, there was no room for tiredness, being defeated or dispersing in the face of the disease. He said no goal was impossible and India had the means and will to set targets and meet them.
Highlighting their contribution to the country and the suffering they have had experienced, Modi said the package would also focus on empowering the poor, labourers, migrants and others from both organised and unorganised sectors.