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
Read more on livemint.com