New Delhi: On account of the planned fiscal relief, monetary policy, and a speedy vaccination campaign, the Finance Ministry stated on Friday that the economy has started to show indications of recovery from the burden of the second wave of the Covid-19 pandemic.
The Rs 6.29 lakh crore wide-ranging economic relief package was extended to combat the second wave. According to the ministry’s monthly economic assessment, the Reserve Bank of India (RBI) is continuing its efforts to ease market anxieties, restore sectors, and recover GDP.
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Finance Minister Nirmala Sitaraman proposed eight economic measures worth Rs 6.29 lakh crore last month to boost the economy and soothe the financial burden of the coronavirus outbreak and lockdown from the country.
In addition to eight relief measures announced in the worst-affected sectors, Sitharaman also announced a stimulus package for the tourism industry, which included five lakh free tourist permits once the government begins issuing. The scheme will have a total financial impact of Rs 100 crore.
The economic review for June predicted that consumer confidence would improve with higher employment backing under the Aatmanirbhar Bharat Rozgar Yojana (ANBRY). Moreover, the credit guarantee scheme for on-lending by microfinance institutions will help assist the urban poor along with Bharat-Net helping to provide wider internet coverage.
"Maintaining a rapid pace on vaccination and quickly bridging health care infrastructure gaps across both urban and rural areas would emerge as the most sustainable stimulus for durable recovery of the Indian economy," the report added.
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On the other hand, it said that the package's free food-grain and increased fertilizer subsidies, as well as ongoing MGNREGA implementation, will act as a shield for rural demand in the coming quarters.
About global economic growth, it said this has continued its upward trajectory in June 2021.
Nonetheless, it said that the resurgence of delta variant infections, firming inflationary pressures, unequal access to vaccination, and rising debt levels continue to lend substantial uncertainty to the global economic outlook.