Today, Finance Minister Nirmala Sitharaman will hold a press conference at 12:30 pm. It is believed that she may announce the next relief package. The Modi government is preparing to dodge another stimulus package to revive the economy that has been downturned by the Corona virus epidemic. Government officials said on Wednesday that a $ 20 billion (1488 billion rupees) economic package could be announced this week to lift the economy out of the historical contraction. The government has already announced a production-linked incentive (PLI) of Rs 2 lakh crore in 10 sectors to boost the manufacturing sector. Production incentives will be given in areas such as auto, pharma, telecom, textiles, food products, solar PV.
On the condition of keeping the identity confidential, sources said that PM Narendra Modi, Finance Minister Nirmala Sitharaman and other senior officials will finalize this plan on Thursday. Sources declined to give more details of the package, saying that it would be for sectors under pressure, aimed at increasing employment.
The previous stimulus package of the Indian government, which came in May, was not completely successful in reducing the shock to the economy caused by the corona virus lockdown. The focus of this package was to increase liquidity and provide easy credit to small businesses. But more was not done to boost spending. In this package, the worst affected sectors like tourism, hospitality and aviation were left out of Corona.
A few years ago, the International Monetary Fund (IMF) for the Indian economy indicated that it would be among the fastest growing economies in the world. But the corona epidemic caused a 23.9 percent contraction due to the lockdown in March.
Corona virus cases are still increasing rapidly in major cities of the country and more than 40 thousand cases are coming every day. However, for the first time in the last three months, active cases have fallen below 5 lakh. The government has lifted most of the restrictions.
Modi government is going to announce another big economic package on Diwali, focus will be on increasing employment