Chorus for economic stimulus package is rising in india as the country expands lockdown to fight novel coronavirus pandemic. The coronavirus outbreak has brought gloom in the businesses. Stock market crashes are only reflecting the business sentiment in the country and the world. Revenue loss across businesses is going to complicate already stressed economic situation in India. Demand for immediate intervention by the narendra modi governemnt and the bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW'>reserve bank of india (RBI) is growing with every new message.
Many countries including big economies such as the US, japan, germany and france have announced big stimulus packages. The US is planning a cash handout scheme. Some other countries too are mulling to infuse money into their markets to bounce back from the coronavirus shock. In the US, there are talks about introducing a $1,000 dollar direct cash transfer to its citizens as this is an amount considered to be average weekly income in the country. There have been talks of a similar direct cash transfer scheme in india for quite some time. First concrete proposal came in 2017 in the Economic survey wherein then Chief Economic Advisor Arvind Subramanian argued for Universal Basic Income (UBI) for every citizen. The report proposed for a monthly UBI after scrapping all existing subsidies of Rs 7620. This was aimed to giving money in people's hand to sustain consumption and thereby economic growth.
Another proposal came from the india NATIONAL CONGRESS' target='_blank' title='congress-Latest Updates, Photos, Videos are a click away, CLICK NOW'>congress during the lok sabha election in 2019 when rahul gandhi promised Rs 7,200 to every citizen under a scheme called Nyay or the Nyuntam Aay Yojana. prime minister narendra modi instead announced a PM Kisan scheme of Rs 6,000 per year to small farmers. The overall cost of this scheme was estimated at Rs 75,000 crore. But the clamour for bigger cash handouts scheme and a separate stimulus package for industry has grown as novel coronavirus pandemic hit india in the middle of an extended economic slowdown.
