Reforms take time to pay dividends. The government’s loan guarantees and credit lines will do little to revive demand in the short-term.
Indian companies are worried. Justifiably so The government’s much-awaited economic package appears to have let India Inc. down.
It was billed as an exercise that would offer relief worth ₹20 trillion, and an outer count of the money that may potentially be available over time does add up to that sum, or more.
But the Centre’s actual fiscal bill would go up by only about a tenth of that figure. No direct compensation was offered to companies forced to suspend operations, not even those hardest hit by the corona disruption.