Topic: India's new financial package is a national laughing stock - what do you think? - page 2. (Read 686 times)

The indeed sent out financial helps to a certain segment of the population. Do you know the amount? It's 500 INR which is 6.65 USD as on today's rate. A decent meal in an average Indian restaurant usually costs twice as much. So you can understand what 500 INR can do as financial help! It's a joke!

There is a chance of inflation but with more and more people loosing their job, the market is already suffering from the lack of liquidity. Unless and until people get to spend money, the entire financial help makes no sense!

India was progressing well until the current leaders came in. The current ruling party of India is based on religious beliefs and majority of their ministers are either uneducated or expert is spreading communal hatred.

This idea would be practical if the nation has a very efficient Health Care system to be able to stay above the curve. The virus has a low fatality rate should the cases be attended to, but a rapid spread rate. In a situation where there are more patients than the health system can admit then the death rate tends to go higher. India has a very high population and the the virus can spread easily there.

On the flip side nations can't remain closed indefinitely pending a vaccine. Nations have to be opened up, but this should be done with caution and only relevant sectors should be allowed to, while following health guidelines. Funds can also be diverted to the purchase of PPEs.
Herd immunity could also be achieved after a while.

The MoF must be having a terrible headache at the moment lol. I think whatever they can do is limited since we are dealing with a severe economic shutdown. I have this idea about letting people free as before, but instead of giving incentives to boost the demand, the money can be used to guarantee 100% medical treatment if someone becomes infected. So get out and work! Don't be afraid! And even if you get sick because of it, we will give you free treatment.

This article reports that India distributed about $22.5bn in food supplies and cash transfer to vulnerable families last month. It was billed to have reached up to 800 million people.
Also, If the loan packages can be distributed to SMEs then it could reach the grassroot of the nation, thereby touching more lives and this would equally help boost spending and support the economy.

Governments also have to regulate the money flow to prevent inflation.
I made a reply few days ago on how giving out loans to small, unsustainable businesses is going to affect the UK as statistics shows there would be lots of defaulters.

Maybe it is too hasty for you to conclude that no help is coming whether direct or not, for such amount to be put out to support in this covid-19 lockdown. If food is not distributed directly, government might give money to small businesses to flourishing again and with that many families can benefit. It is a hard time for government and they would want to restart the economy by encouraging more employment and not to share everything in food stuffs. Be patient with your government.

Financial assistance is often in the event that the state fears a recession and thus encourages public sectors to continue spending.
Companies are the lifeblood of many economic activities, and therefore the government supports them to continue to pay salaries to them and thus move economic life.
Direct support to individuals will be good after checking the indicators above, but do not forget the huge number of citizens in India, which makes the incentives issued may be few compared to others.


I think that there was some support for the poor segments, I remember that in March a number of economic relief measures were announced to the poor totaling more than 24 billion US dollars + a free food grains package.

I don’t know how the government’s decision was implemented, but I think the economic data coming from India is very reassuring.

India, under the leadership of Modi has recently announced a financial package to help all segments of people in the country. The approximate value of the package is 263 billion USD and people are laughing at it. Modi has again proved himself unworthy of leadership because there's no direct help offered to any segment of people. He has just made a lot of loans available for all. Let me summarize the entire scenario with a beautiful story. The author of the story is unknown.

The story:
My neighbor Alex works for a pen factory. One fine morning, he came knocking my door. After few pleasantries, he asked for monetary help as his factory is closed for last 2 months due to the COVID induced lockdown and he was not paid his salaries. So he asked for some money so that he can feed his family. After listening, I requested him to come after 2 days and promised that I will arrange something for him.

After 2 days, Alex again came knocking my door. Today I offered him a cup of coffee and after few pleasantries I told him that, I have had a discussion with the local bank manager and arranged for a loan of $100,000 for his pen factory owner. So I asked him to speak to his pen factory owner so that the owner can get the loan from the local bank to resume his production and send the manufactured pen to the market. Once the pens are sold, the owner can then pay the installments of the loan and also pay the salaries of the employees.

Alex fainted!

My conclusion: The entire package doesn't talk about any direct help for the people. It only talks about cheaper loan availability to the industries. A classic example of directionless leadership.

What do you think?