Injecting 20 Lakh Crore in the economy displays the vision of the Indian government to uplift the falling economy. When you introduce the economic relief package equivalent to 10 % of your GDP, it creates the tectonic movement in the market. This package will boast our primary, secondary, and tertiary sectors. The main beneficiary of this package will be all Small scale, MSME industries, as they depend on the government’s economic policy.

The relief package is the first step by the government to revive its economy, but it will only be successful if this money disposes of in time. Governments have to make sure the livelihood of migrant workers gets restored by boosting up the spending in manufacturing, production, construction industries.

The revolving of money in the economic cycle will mostly depend on how fast manufacturing and production industries restores there operations.

The role of RBI in this initiative is immeasurable. They followed the systematic approach by first reducing the reverse repo rates and then injected 3.74 lakh crore liquidity at the end of March and by targetting 1 lakh crore TLTRO. Not only infusing money by varying basis points, but the central bank also making sure financial institutions like NBFC and the financial products such as Mutual funds don’t collapse by introducing Rs.50,000 Crore each at there disposal.

In a nutshell, it is one of the bravest decisions taken by the central leadership, and in the coming days, it will increase its credibility domestically and internationally.

 

Image Credits:
Bandra Worli Sea Link, Mumbai, India by Saxena

Featured Image Credit:
Bandra Worli Sea Link, Mumbai, India by Saxena


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