Amid the pandemic and subsequent disruption, non-salaried middle class has been the worst hit, and the government's second economic stimulus is likely to bring to this category, this is as per a report in Indian Express. For now the government is said to ascertain who needs the benefit in the current grim situation but it needs to decide is on the timing of such economic stimulus and mode of delivery of the economic bail-out package.
The initial package rolled out in view of the pandemic in May was considering that the economic recovery would begin in March but after some green shoots, the economy is likely to see contraction in Q2FY21 also as the coronavirus cases continue to mount with no imminent relief in sight.
And with devastating impacts being seen, the Indian economy will be on recovery gear only once the coronacases begin to settle down or the vaccine becomes available. Only recently, India goes past Brazil to be the country with the highest case load and with record GDP contraction in Q1Fy21, policymakers may be opening up extraordinary taps for imparting financial stability.