How big is Modi economic stimulus?
Published On: Wednesday, May 13, 2020 | By: Team KnowMyStock
India’s biggest-ever economic stimulus, dubbed as ‘Atma Nirbhar Bharat Abhiyan’, adds up to Rs 20,00,000 crore, which would be roughly 10 percent of India's GDP. Analysts expect the package to include loan waivers for MSMEs, increased spending, GST rate cuts, and credit guarantees to incentivise lending to MSMEs. At $266 billion, the stimulus value in dollar terms is higher than the GDP of 149 countries such as Vietnam, Portugal, Greece, New Zealand, and Romania. It almost equals Pakistan's annual GDP of $284 billion. At $266 billion, the stimulus value in dollar terms is higher than the GDP of 149 countries such as Vietnam, Portugal, Greece, New Zealand, and Romania. It almost equals Pakistan's annual GDP of $284 billion.
The Rs 20,00,000 crore stimulus roughly equals 20 per cent market value of all the listed stocks on BSE. BSE’s total market-cap stood at Rs 121 lakh crore at the end of Tuesday's session.
The stimulus is roughly over one-third of the Rs 58 lakh crore wealth erosion that BSE-listed stocks saw between January 17 and March 23, when the benchmark indices hit their lowest points.
The package is worth nearly 10 times India's aggressive divestment target of Rs 2.1 lakh crore for FY21.The government's revised divestment target for FY20 stood at Rs 65,000 crore.
The package is worth double the enterprise value of India's most valued company, Reliance Industries. At Tuesday’s closing price, RIL was worth Rs 9,88,946 crore.
Tags: Modi economic stimulus
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