Fresh support of only Rs 12-13 trn in economic stimulus: DBS Bank economist

PM Modi outlined a Rs 20-trillion which is 9.7 per cent of GDP support package, of which new allocations could only be 50-60 per cent of the offer

Of the Rs 20-trillion package that Prime Minister Narendra Modi announced to defend the economy against coronavirus disruptions, fresh support may be only around 60 per cent of the offer as it counts the first financial stimulus and liquidity support that Reserve Bank has given already, and will overburden bond market, says a report.

In a big push to revive the COVID-hit economy, PM Modi on Tuesday announced massive new financial incentives on top of the previously announced packages for a combined stimulus of Rs 20 trillion.