COVID-19: India Govt. ready with 2nd economic stimulus |
The Indian government is considering a series of measures to boost the economy, including offering up to $40.8 bn in incentives spread over six years to create global supply chains in some sectors, tariff protection to key industries, further relaxation in foreign investment rules, and schemes aimed at the urban unemployed. Various expert groups in the government are working on specific fiscal incentives and policy reforms that are expected to take effect from the third quarter (October-December) of the current financial year to accelerate growth. India`s gross domestic product (GDP) contracted by a record 23.9% in the quarter ended June 2020, making India the worst performer among major economies that have all been hit by the Covid-19 pandemic. Finance minister Nirmala Sitharaman unveiled relief and economic stimulus measures between May 13 and May 17 this year under the $272.2 bn Self-reliant India Initiative package, which also included monetary measures by the Reserve Bank of India. The production-linked incentive (PLI) scheme is approved by an empowered group of secretaries and the matter will soon be placed before the cabinet for its approval. In order to attract FDI in infrastructure and transportation sectors, the government may also announce a series of policy measures in some sectors.
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