India Prime Minister announces $270 billion stimulus package amid lockdown

As India battles the impact of coronavirus pandemic, the Prime Minister Narendra Modi on Tuesday 12 May 2020 disclosed a plan to offer a stimulus package worth $270 billion for small businesses and labourers in an attempt to boost flagging growth in the face of economic challenge the virus has caused.

The package which is worth 10 percent of the the country’s GDP came as the country is set to mark its 50th day in what is one of the biggest lockdowns in the world as the number of confirmed cases rose to 70, 000 with 2,200 deaths in the country.

The prime minister stated however that the $2 billion relief package by the Central Bank announced late March is part of the current $270 billion stimulus package.

According to the Prime Minister in a televised address, “This economic package is for Indian self-reliant movement. It is for the cottage, small and medium scale industries.”

It would be recalled that since Indian’s biggest lockdown began, tens of millions of livelihoods have been greatly affected out of about 1.3 billion population of India with migrant workers, day labourers being the worst hit as most of them have lost their job.

The government however acknowledges the strictness of the lockdown pattern and how it has been affecting lives of the people especially the poor.

“Day labourers, migrant workers have suffered much in this period. It is our duty now to do something for them,” the Prime minister said.
He also said that in the next few weeks

India’s Finance Minister, Nirmala Sitharaman, would give extra details about the stimulus package.

Modi further said there would be difference in the next phase of the lockdown which is expected to end on May 18 saying that “It will be based on suggestions received from states.”

He, however, said more details about the next phase of the lockdown would be disclosed in few days to come.