Prime Minister Narendra #Modi on May 13 announced a Rs 20-trillion package, worth nearly 10% of India’s GDP, to boost the economy amid a slowdown made worse by the coronavirus pandemic.  The PM also emphasised the opportunities that lay in this crisis and called for India to work towards becoming ‘atma-nirbhar’, or self-reliant, and being “vocal about local”.   A day later, in the first of a series of briefings to detail the economic package, Finance Minister Nirmala Sitharaman announced a slew of measures to boost the country’s #MSME sector, besides other steps to spur demand.   How large Modi’s economic package really is? From where will the govt get the money to finance it? What did the PM really imply when he spoke of ‘Atma-nirbhar’ Bharat?  Let’s take DeepDiveWithAKB to understand.

Deep Dive with AKB: Govt's Rs 20-trn package to fight Covid-19 slump

Business Standard Editorial Director A K Bhattacharya demystifies key news developments and broad issues that concern the Indian economy and the common man

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As the Indian economy is reopening after several months of no activity amid strict coronavirus-induced lockdowns, some indicators are pointing to an economic recovery of sorts. But there also are some very confusing paradoxes and mixed signals. For instance, even as demand in the economy is squeezed, inflation continues to be high and food prices are going through the roof. In fact, retail inflation climbed to an eight-month high in September, and wholesale inflation to a seven-month high.   Why? What explains high retail prices in these times? What impact will it have on interest rates? And when could we expect food prices to see some cooling?   Let’s take a deep dive with AKB to understand.

Deep Dive with AKB: Why is inflation rising when demand remains low?

Finance Minister Nirmala Sitharaman recently announced a two-pronged stimulus package to step up capital expenditure and stimulate consumer demand during the coming festival season. But how effective will these steps prove in boosting consumption? Who stands to gain the most? Are the measures indeed the most fiscally prudent in these times?   Let's take a Deep Dive with AKB to understand.

Deep Dive with AKB: Facts you should know if you plan to avail LTC facility

When the Narendra Modi-led central government rolled out the goods and services tax, or GST, in July of 2017, it was pitched as the greatest indirect tax reform in India. It was meant to streamline processes between the Centre and states and further the cause of what is touted as ‘one nation, one tax’.   But the sailing since then has not been as smooth as one would have liked it to be. Even if its intent has been backed by most, the Centre has often been criticised for the messy rollout of GST.   And now, when the coronavirus pandemic has hit the Indian economy hard and squeezed government revenues, we are seeing quite a row between the Centre and states over GST compensation. We are also hearing the questions of cooperative federalism being raised.   So what is the whole controversy about? Why are some states miffed? What is the government’s solution to the problem? And what could lie ahead?   Let’s take a Deep Dive with AKB to understand.

Deep Dive with AKB: GST row and the question of cooperative federalism

In five press briefings held in as many days, Finance Minister Nirmala Sitharaman has announced several measures to provide support to individuals and the economy, which have been hit severely by successive nationwide lockdowns to prevent the spread of coronavirus.   Earlier, Prime Minister Narendra Modi had announced that his govt would provide a massive Rs 20-trillion economic stimulus package to help make India ‘atma-nirbhar’ or self-reliant.   In her five-tranche package, the finance minister covered measures and reforms for the MSME sector, agriculture & allied sector, the Essential Commodities Act, migrant workers, labour codes, coal and mining, power distribution, defence production, employment generation, civil aviation, PSU rationalisation, insolvency and bankruptcy code, among other things.   Are these measures going to be enough to tide over the crisis facing the economy at present? What will be their short-term and long-term impact? Financially speaking, what will all this mean for the government?   Let’s take a Deep Dive with AKB to understand these and more.

Deep Dive with AKB: Govt's Rs 20-trn package to fight Covid-19 slump

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