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LATEST NEWS UPDATES | India needs a strong fiscal stimulus -Pulapre Balakrishnan

India needs a strong fiscal stimulus -Pulapre Balakrishnan

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published Published on Apr 15, 2020   modified Modified on Apr 18, 2020

-Hindustan Times

Plan for a Rs 20 lakh crore-stimulus. It is needed for both immediate relief and economic revival

India has seen among the most stringent prevention responses to the coronavirus disease (Covid-19) so far. With a complete lockdown for three weeks already, and a further 19 days added on Tuesday, it has hit the maximum in an index of stringency designed by the United Kingdom’s Overseas Development Institute. But its economic response has been among the weakest, with an outlay of less than 1% of GDP compared to 10% in the case of the United States (US), 16% in Malaysia and a staggering 20% in Japan. It is important to dismiss the argument that India is poor and hence cannot be expected to do what richer countries have done. When a response is classified as weak, the evaluation is not in terms of absolute sums of money, but of the outlay in relation to a country’s capacity measured by its GDP.

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Hindustan Times, 15 April, 2020, https://www.hindustantimes.com/analysis/india-needs-a-strong-fiscal-stimulus/story-QYu2VqYMMtVESfuQkQswfP.html


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