Positive impact of Financial package of 20 lakh crores to recover economy in post COVID lockdowns
The financial package is very well designed and would act as a balm on badly affected economic and financial activity and welfare of people due to lockdowns to protect the lives of people.
According to Agarwal, It is first time the wide ranging much needed reforms have been introduced in the country. The present format of reforms include investment in building infrastructure in agriculture for which Finance Minister has rightly provided Rs. 1 lakh crores, removing wide ranging controls on agriculture produce, changing the definition of MSME and opening of some sectors like defense to the private sector with a view to promote self reliance. Another set of important reform carried out is opening doors for private sector in defense, power, space and inviting FDI in civil aviation and power sector are laudable and would bring fruits for the stressed Indian economy. Government has shown a lot of concern towards "Atmanirbhar"
Dr. Agarwal feels that the Government has adopted welfare orientation in pandemic by proving health to poor down trodden and needy for the most basic needs.The stimulus will help age old controls in farm sectors to be lifted. We need to take care of farm sector. Farmer income may go up which is very important feels Prof Agarwal.
Stimulus would support infrastructure, business and economic system by infusing liquidity. EPF support to business and workers to the extent of Rs 2800 crore., reduce the deepening of recession in the economy, help fight against covid 19 and hunger; reviving the trade, businesses, MSME, industry and the economy, generating employment for sharmiks near their home towns, extend necessary help to agriculture and rural economy opines Dr. Agarwal.
Dr. Agarwal feels that there would be positive impact of stimulus on trade, business, investment and economic activity in the post Corona 19 and lockdowns,
Indian Institute of Finance