Of Modi's four 'Ls' of production, FM Sitharaman focused on liquidity

With the MSME segment contributing to output and providing widespread employment, successfully supporting it is money well spent.

When Prime Minister Narendra Modi announced a Rs 20 trillion Covid-19 economic stimulus last evening, it was India’s “Shock & Awe” moment. The number, a whopping 10% of India’s current GDP, was substantially more than even the wildest expectations. It was an immediate cause of celebration in domestic equity market circles and consternation in the domestic debt market group. However, discerning citizens realised two things quite swiftly. Firstly, the amount included all that had been announced by the Government and the RBI so far. And secondly, details of new measures will be provided by the Finance Minister (FM) only later.