Will $265 billion package enough for India?

Post-Bahubali package announcement, the government has now to prove its ability by implementing the package scrupulously. As the country is facing an economic dip, it is crucial that all the available resources should be utilized effectively and efficiently.

Hyderabad: Prime Minister Modi unveiled an unprecedented mega financial package on Tuesday night, promising to bring greater social benefits to the domestic sector amid the turmoil created by the coronavirus pandemic.

Finance Minister Nirmala Sitharaman inaugurated the exercise to outline how Rs 20 lakh crore stimulus scheme would be launched across the sectors.

The 15 variants mentioned by the Finance Minister -- ranging from micro-small-medium-enterprises (MSMEs) to the strengthening of power distribution companies -- have reflected the spirit of 'Atmanirbhar Bharat'.

The Prime Minister declared 15 days back that the message of coronavirus catastrophe is non-dependence on outsiders for domestic needs and the villages, districts, states....the entire country must work towards self-sufficiency.

Post-Bahubali package announcement, the government has now to prove its ability by implementing the package scrupulously.

It is well known that within two days of the first phase lockdown, the Finance Minister released Rs.1.70 lakh crores package under 'Pradhan Mantri Garib Kalyan Yojana'.

That is equal to 0.8 per cent of Gross Domestic Product (GDP). Plus, the value of the two policy decisions taken by the Reserve Bank of India (RBI) in two phases is approximately 3 per cent.

Combined with these, the package of Rs 20 lakh crore the centre has recently developed is nearly 10 per cent of the GDP of India. Among the countries which have diverted major part of GDP for strengthening the systems, India is next to Japan (21.1%), the US (13%), Sweden (12%) and Germany (10.7%). This mega package will be considered achieved only if the items of the new agenda -- increase in production and extensive employment generation -- are achieved at 100 per cent.

After the agriculture sector, the initiative taken by the centre to support small enterprises shut down by the attack of coronavirus and provide employment to 12 crore unemployed will provide boost to many MSMEs. All sectors that support development must be encouraged.

At a time when hospitality and tourism sectors are completely down, they must be revived on priority basis.

Fortunately, surplus food situation gives the country the required confidence. The government should procure food grains from the farmers to save them and provide food to the needy.

Britain is willing to bear 80 per cent of its workers' wages — the US and Australia have extended the scope of unemployment benefit.

Here also, the government should take full responsibility for the wage distribution of cash-crunch companies and industries.

In the current crisis, wasteful distribution of money should not be the objective of the mega package. All care must be taken to ensure maximum benefit to the masses at minimum cost.

The extent of support to different sectors must be properly assessed to save every rupee of the tax payer's money. When more people have employment opportunities, their purchasing power naturally increases, hence contributing to the national economy. To that extent, the government's success in achieving maximum results with the limited resources by utilizing the services of experts and government machinery can ensure a forward thrust to nation's progress.