Indian Government Plans to revive Broken Economy.
                     Indian Government Plans to 
revive Broken Economy
Rs 20 lakh crore package
• The Prime Minister has announced Lockdown 4.0. Despite 
some resulting increase in economic activity, millions will 
remain without their regular incomes. He also announced a 
package of Rs 20 lakh crore, but this includes already 
allocated money of Rs 6 lakh crore and monetary policy 
directives to banks and non-banking financial companies.
Source: Google Images
No additional spending
• The announcements by the Finance Minister thus far involve 
no additional public spending, even though this is urgently 
required to revive the economy and prevent further contraction. 
The government is expected to take some steps immediately in 
fiscal terms for reviving the economy and supporting 
livelihoods.
Source: Google Images
PM’s announcement
• The Prime Minister said India had to seize the opportunity 
presented by the pandemic to overhaul its economy, 
undertake “bold reforms” and ensure this would be “India’s 
century”. The package is equivalent to about 10 per cent of 
India’s gross domestic product.
Source: Google Images
Moving away from China
• PM Modi has been holding consultations with ministers and 
officials in recent days, aimed at laying out strategies for 
how India could woo new manufacturing investments from 
companies looking to diversify their global supply chain, and 
reduce their dependence on China.
Source: Google Images
Massive downfall
• India is in week nine of a lockdown that has brought the 
economy to a near-standstill. It has also created a huge 
humanitarian crisis with an estimated 140 million people 
losing their jobs, including vulnerable migrant workers who 
were left stranded without work or wages.
Source: Google Images
‘Atmnirbhar’ Bharat
• The Prime Minister stressed the need to become 
‘atmnirbhar’ or self-reliant, the creation of a self-reliant 
country. Prime Minister Narendra Modi laid out a 
comprehensive vision, and that vision was laid out after 
wide consultations with several sections of the society.
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Cash benefits
• So far, Rs 52,606 crore has been transferred to 41 crore Jan 
Dhan account holders, Rs 18,000 crore grain transfers; Rs 
20,000 crores subordinate debt for stressed MSME. Two lakh 
MSMEs are likely to benefit from it. 
Source: Google Images
Expectations from India Inc
• Equity strategists and economists expect India’s government 
will have to spend more to revive the economy as steps so far 
aren’t sufficient with investors’ focus shifting to worsening 
macro indicators. Some economists estimate the additional 
government spending is only about 1 per cent of GDP.
Source: Google Images
Difficult times ahead
• India’s government extended its nationwide lockdown until May 
31, while further easing restrictions in certain sectors to boost 
economic activity, as coronavirus cases escalate across the 
country. Infections are surging across the nation of 1.3 billion 
people, with more than 95,698 infections, including 3,025 deaths
Source: Google Images