India announced a mega economic package to bring the wheel of economy back on track yesterday. Prime Minister (PM) Narendra Modi said that the package would be around 10% of the GDP. The whooping 20 lakh crore package is not a unique step by India amidst pandemic. However it is one of the substantial packages in the world.
As the world fights the pandemic economies across the world have been sliding down. From U.S to Japan all have announced such packages to bring things back on track within the country. Comparing our package with that of other countries in the world would give us a check of efforts we are making. Thus, here is a quick comparison of where we stand:
- United States has announced an economic package of 13 per cent of its GDP
- Germany has announced an economic package of 10.7 per cent of its GDP
- Spain has announced an economic package of 7.3 per cent of its GDP
- Italy has announced an economic package of 5.7 per cent of its GDP
- Japan has announced an economic package of 21 per cent of its GDP
Going by the global data surely Japan leads the pack. This also shows that India’s effort are very much in line with global efforts and takes in consideration its need and economic situation. Out of the 20 lakh crore packages that have been rolled out so far include:
- Rs 1.7 lakh crore package of free foodgrains to poor and cash to poor women and elderly
- Reserve Bank’s liquidity measures and interest rate cuts amounting about Rs 6.5 lakh crore
The package focusses on land, labour, liquidity and laws. It would cater to needs of sections like cottage industry, MSMEs, labourers, middle class, and industries. An additional Rs 12 lakh crore would be pumped into the economy as a result of the package.