The Government of India's relief package is one of the world's largest in the direction of fighting the Corona epidemic. Prime Minister Narendra Modi said on Tuesday that the government will give a total package of 20 lakh crore rupees, including the package announced by the Finance Ministry and the Reserve Bank. It is a relief package equivalent to 10 percent of the country's GDP. So far, the US has announced a package of 11 percent of its GDP and Japan more than 20 percent.
Government of India has already made some announcements
The package announced by the Government of India includes a package of Rs 1.7 lakh crore announced for providing food grains to the poor and cash assistance to poor women and the elderly and announcements made by the Reserve Bank. The Prime Minister has said that this special package will help in moving towards making the country self-reliant. The lockdown has been underway in the country since March 25 to slow the spread of Corona. Due to this, the wheel of most of the activities is stuck. The third phase of the lockdown is currently underway with some discounts, which will be completed on 17 May. Even after this, PM has said that the lockdown will continue with some additional discounts. In such a situation, it is necessary that the economy is facing this crisis.
Trying to revive the economy and increase demand
According to various estimates, in the current situation, the country's economic growth rate may go down by one percent or even less. In the circumstances caused by Corona, market demand has been badly affected and more than 120 million people are estimated to have lost their jobs. In such a situation, the government will try to revive the economy and increase demand with the help of this package. The huge 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 has been demanded by the industry.
Know the condition of other countries
After Japan and the United States, Sweden has declared 12 percent of GDP, Germany has announced a relief package of 10.7 percent. India is followed by a relief package of France 9.3 percent, Spain 7.3 percent, Italy 5.7 percent, Britain 5 percent, China 3.8 percent, and South Korea 2.2 percent.