NEW DELHI - India is preparing a US$19.6 billion stimulus package to tackle the economic impact of the coronavirus (Covid-19) pandemic, sources familiar with the matter told Reuters.
India is currently in lockdown imposed by Prime Minister Narendra Modi as part of the government’s effort to prevent the spread of the coronavirus.
According to the sources, the government has not yet finalised the stimulus package while discussions are ongoing between Mr Modi, the Ministry of Finance, and the Reserve Bank of India (RBI). They added that the package, expected to be announced by the end of this week, will be used to directly put money into the accounts of over 100 million poor people and support businesses most heavily affected by the lockdown.
In addition, the sources said the Indian government also plans to increase its borrowing for the 2020-2021 fiscal year from the initial estimate of around US$103.6 billion and that the central bank has been asked to purchase some government securities for the first time in the past decades.
Neither the Ministry of Finance nor the RBI has commented on the matter so far. (MS)