The signals from the stimulus are crystal clear. It is more monetary than fiscal. Clearly, the government is trying to bet on the entrepreneurs, self-employed, farmers, rural industries, and local businesses. This seems increasingly like a Bharat driven economic recovery of India. More money will flow into rural Bharat than urban India. A simpler approach to putting money in the hands of the people. The salaried class has not been preferred in stimulus announcements made so far.
The government is simultaneously working to stabilise its resources and to spend money judiciously in welfare schemes. Food availability has been ensured. It is a smart move to utilize the government’s investment in procurement by FCI. In this challenging financial environment, resources are scarce for the government, the centre is still ensuring that money is available to society. Another positive step by the centre is working closely with industrialised states to adequately support their businesses. These measures must be watched closely, measured effectively and course-corrected swiftly.
Good intent needs effective translation on the ground. The stimulus so far signifies enormous good intent and sends the right signals. The coming months need solid supportive actions. The signals must create business traffic, movement of capital, and bustle in an economy at the crossroads. Fingers crossed!