The Modi government will provide another relief package. The PMO is making strenuous preparations
The central government is working on another relief package to get the economy back on track. The second relief package will focus on the country's middle class population and small businesses. A few days ago, Chief Economic Adviser Krishnamurthy V Subramaniam said that another relief package could be expected soon.
His statement now coincides with the Modi government's move to revive the economy. The government believes that the announcement of a second relief package would be more beneficial in the current situation, as the lockout has now been lifted and businesses and other services have opened in most states.
A series of meetings in the Ministry of Finance
There is a continuous round of meetings in the Ministry of Finance to take the right path to keep the economy alive. There have been a lot of pickets in the last two months. The government has also come under fire after official GDP figures came out recently. The economic growth rate in the April-June quarter was -23.9 percent. India has become one of the countries in the world where the economy has been hit the hardest.
PMO's eye
Following the release of GDP figures, it is now believed that the finance ministry is wary of the challenges ahead. There is no sign of any improvement in GDP in the other quarters of the current financial year.
Many experts estimate that the Indian financial year could decline by 7 to 9.5 per cent in the current financial year. The Prime Minister's Office (PMO) is also keeping an eye on the recent meetings in the finance ministry. PMO officials are also participating in these meetings.
The biggest challenge is to boost demand
The festive season is coming. In such a scenario, the government hopes that market demand will pick up. Increasing demand is very important to improve the current situation in the economy. India Today, citing a source, wrote in a report that if government officials regularly meet with corporate leaders, a blueprint for further economic reform could be prepared. Corporate leaders have made it clear in their advice that declining demand is the biggest challenge of the present time.
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Focus on the middle class and small business
The report said that in the new relief package, the government is focusing on the middle class population and small businesses. Explain that even during the announcement of the first relief package, the government had said that this would not be the last relief package. The government is currently working on a new relief package.
New announcements may also be made for the MSME sector
The Prime Minister's Economic Advisory Committee, which also includes officials from the NITI Commission and the Finance Ministry, believes the country's middle class and small businesses need support. In such a scenario, it is being speculated that the second relief package will be concentrated in both these segments.
Apart from this, it is expected that the government may also make some additional announcements for Micro, Small and Medium Industries (MSMEs). MSMEs are the backbone of the manufacturing sector in India. Many economists have said that the Indian economy is going through its worst phase. He says direct financial action is a need of the hour.
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