The coronavirus-induced lockdown and gradual unlock of the economy of India is showing its effects now. The GDP growth contracted by a massive 23.9 percent this financial year.
The Central government, in bid to revive the economy, plans to announce a 'fiscal stimulus package' before the start of the festival season. This relief package will be bigger than the self-sufficient India package and the PM Garib Kalyan package.
The central government is likely to announce an incentive package of Rs 35,000 crore, whose main focus will be on jobs in urban and rural areas, said a senior official.
The package will focus on urban job schemes, rural jobs, large-scale infrastructure projects, new schemes for farmers and maximum cash transfer.
The 'fiscal stimulus package' can be announced before Dussehra.
The festival season which is from October-December (3rd quarter of this financial year) is very important for consumer-based companies, especially the automobile sector and companies making electronic equipment.
The central government wants to increase demand by announcing Fiscal stimulus package which is needed to push economic recovery.
The Central government also plans to launch jobs program for urban and semi-urban areas on the lines of NREGS. The preparation of the job program is in the final stage.
This scheme will be implemented first in Tier 3 and Tier 4 cities i.e. small cities before being implemented in big cities.
The Central Government is going to promote such projects under the National Infrastructure Pipeline which creates more and more employment opportunities. Officials said that 20-25 such projects have been identified in which investing more money will create more jobs in the shortest possible time.