Prime Minister Narendra Modi on Tuesday announced a massive financial package worth Rs.20 lakh crore, i.e- about 10% of India's GDP, equivalent to about $265 billion.
Based on data compiled by economist Ceyhun Elgin in the COVID-19 Economic Stimulus Index (CESI), India's stimulus package, standing at 10 per cent of the GDP, fares as the fifth-largest among G-20 economies in terms of spending as a percentage of GDP.
Amongst these, Japan leads the list by spending 21.1% of GDP on COVID-19 related economic stimulus measures. Japan is followed by the United States which has committed to a three-phased congressional stimulus package at $8.3 billion, $192 billion and $2.5 trillion, equating to approximately 13.3% of US GDP. The US is followed by Australia at 10.8% and Germany at 10.7%. India occupies the fifth position in this list at 10%.
Countries and economies that have been the worst-hit amid the pandemic like Spain and Italy have stimulus packages roughly at 7.3% and 5.7% of their GDP respectively, as per Elgin.
If the same was to be looked at in terms of world economies (not just G-20 nations), India would tie with Hong Kong at the 19th place, as per the list.
In a massive development on Tuesday, Prime Minister Narendra Modi announced a financial package to boost India's self-reliance. According to him, the earlier decisions of the Centre, including those by RBI, along with the new package totals Rs.20 lakh crore- i.e 10% of India's GDP. However, the details of the package shall be announced by Union Finance Minister Nirmala Sitharaman on Wednesday, May 13. The PM mentioned that this would benefit the workers, hawkers, street vendors, farmers, the business class, etc. He added that special emphasis has been paid to land, labour, liquidity and laws.