Prime Minister Narendra Modi today said that in the next few days Finance Minister Nirmala Sitharaman will come out with a number of announcements for the revival of the Indian economy that will be aimed at making the country self-reliant.
"I am announcing an economic package of Rs 20 lakh crore, which is almost 10 percent of India's GDP, to help India become a self-relaint nation. This economic package will focus on areas like land, labour, liquidity and law," the Prime Minister said.
Including the already announced Rs 1.7 lakh crore package and the numerous measures implemented by the Reserve Bank of India, the new set of measures will involve a package aggregating Rs 20 lakh crores.
The economic package is 10 per cent of the total GDP, which is way above what most analysts were expecting.
The Prime Minister also encouraged the domestic industry and use of domestic products. "From today, every Indian should become vocal for our local. Not just buy local products, but also promote them with pride. Our nation can do this. Your efforts have always increased my respect towards you," he said.
Speaking on self reliance the Prime Minister said that the 5 pillars were Economy, Infrastructure, Demography, System and Demand.
Today's announcement of a Rs 20 lakh crores package is expected to go down well with the industry and Stock markets.
However, the government has to be careful on such spending, as it could lead to a jump in the fiscal deficit, which could lead to a sovereign downgrade of its ratings.