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Indian government launches third round of stimulus measures totaling Rs 1.2 trillion

Asia / Business and Finance

India's economy is seeing a strong recovery, Finance Minister Nirmala Sitharaman said Thursday in announcing a third round of fiscal stimulus.

Indian government launches third round of stimulus measures totaling Rs 1.2 trillion

According to Indian Finance Minister Nirmala Sitharaman, the government will spend 1.2 trillion rupees (approximately $ 16.1 billion) on the third round of the country's economic stimulus program, in addition to the 1.45 trillion rupees announced on Wednesday last week.

The program includes additional funding for real estate developers and contractors, fertilizer subsidies, a new employment scheme and additional costs for a rural job creation scheme, and a number of other initiatives.

“We expect the new measures to help create jobs and drive the economy,” said Navin Kulkarni, chief investment officer at Axis Securities.

According to Ms Sitharaman, the increase in tax levies on goods and services, higher energy consumption, an increase in the purchasing managers index, improved bank lending and a rise in the stock market all indicate that the stimulus measures taken so far since then, have begun to help the economy bounce back.

The Indian economy, which the International Monetary Fund highlighted as a global bright spot just a few years ago, was among the worst of the world's largest economies between April and June 2020, shrinking 23.9% amid lockdown to contain proliferation pandemics.

Recall that in the third quarter, the steel industry in India showed clear signs of recovery, and for most enterprises in the sector, steel production reached the "pre-pandemic" level. The latest news on the successful implementation of the government's stimulus program is that Indian companies are actively building new steel plants to meet growing demand.

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