MP Congress slams PM Modi's Rs 20 lakh crore Covid package, demands 'at least 50% of GDP'

A day after PM Modi announced a massive stimulus package worth Rs 20 lakh crore to fight the COVID pandemic and usher in a self-reliant India, the Madhya Pradesh Congress raised objection to the amount, asking the Government to give at least 50% of India's GDP. India's overall package amounts to about 10% of GDP, equivalent to about $266 Billion, which is, in-turn, equivalent to 100% of the GDP of Pakistan. 

"20 lakh crore only? Modi Ji, this is a pandemic. Everything is destroyed. Not just 10% of GDP, at least give 50% of GDP," tweeted the Madhya Pradesh Congress. 

As per the Economic Stimulus Index (CESI), India's package is one of the largest in the world. Even among G20 nations, the largest stimulus fund announced by Japan for the country stands at 21% of its GDP. 

Read: '$266 Billion - 10% Of GDP': Here's How India's Covid Package Compares To Other Countries

5th largest package among G20 countries

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%. 

Read: Congress' Milind Deora Welcomes $266 Billion Package; Reference Chinese 'crisis' Proverb

PM Modi announces $266 billion package

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, at 4 pm. The PM mentioned that this would benefit the workers, hawkers, street vendors, farmers, the business class, etc. 

Read: Stock Markets Soar On Morning After PM Modi's Rs 20 Lakh Crore Package Announcement