New Stimulus package worth Rs 2.65 lakh Crore announces by Union Finance Minister Nirmala Sitharaman
On 12th November, 2020, Union Finance minister Nirmala Sitharaman announces measures of stimulus to boost employment, credit and manufacturing keeping in view the Covid-19 pandemic. It includes relief for homebuyers and reality developers, booting rural employment and fertilizer subsidy, among others. The stimulus will cost the government Rs 2.65 lakh crore that constitutes around 15 percent of the country’s GDP.
However, Analysts believe more could have been done, and the government needs to think “out of the box” to revive the animal spirits and get the economy back on the growth trajectory.
“The market did not cheer as government could have done better on the stimulus front. It is important for the government to think out of the box in terms of stimulus,” said Abhimanyu Sofat, head of research at IIFL Securities.