Narendra Modi India pandemic economy Government crisis Narendra Modi India

Opinion: No, India doesn’t need a bigger stimulus

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For now, it’s more important for the government to keep things stable until it’s clear how best to intervene. When Prime Minister Narendra Modi recently announced a stimulus package for India, he said it was worth Rs.

20 trillion — $265 billion, equivalent to about 10% of the country’s GDP. This seemed to fit in with the amounts being spent by some rich OECD economies to deal with the fallout from the Covid-19 pandemic.

Equity markets exulted. In Modi’s India, though, it’s usually wise to wait for the details. Now that they’re out, the markets — and many economists — are disappointed.

Actual spending is a fraction of what Modi promised, they argue — perhaps as little as 1% of GDP. Once equity traders added up the package’s components, the

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