Opinion | Big bang stimulus
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Prime Minister Narendra Modi on Tuesday announced a ₹20 trillion—yes, you heard that right—financial package to boost India’s covid-hit economy and ensure self-reliance. The money, he said, will support various sections, from farmers and labourers to small businesses and the broader industry. Being self-reliant, Modi seemed to indicate, was not about turning inward, but about strengthening India for the world’s well-being. The five pillars of this programme, he added, would be the economy, infrastructure, a new system based on technology, India’s demography, and our cycle of demand and supply.
If indeed the country can fund a ₹20-trillion stimulus this year, it would be far in excess of what economists have been expecting. At about 10% of gross domestic product, such public spending could have a dramatic effect on growth. It could save the economy from one of its worst ever crises. The details of it, however, are still awaited. Also, Modi said that lockdown 4.0 will be in a new form with new rules. The details, again, will follow. Relaxations would help get the economy moving again. But the big bang stimulus has our attention now.
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