Rs 11.2 trn package needed to resurrect economy post-lockdown: Report

Acuite believes that a contraction in GDP in Q1FY21 aside, there is a significant downside risk to the growth estimates of 2-3 per cent for FY21 without the stimulus package

The government will need to pump in a massive Rs 11.2 trillion ($150 billion) into the economy to revive it from the blow dealt by Covid-19 pandemic and subsequent nation-wide lockdowns, Acuite Rating has said in a report.

The economic package working out to around 4.8 per cent of FY20 GDP, is the amount of loss incurred during the first and second phases of the lockdown starting from mid-March till May 3. The rating agency has said that with the economy losing GDP worth $4.5 billion per day, only a big stimulus package from the government could create the