Question

Measures taken by india governments to overcome macroeconomics problems in their country

Answer 1

Indian government has taken several steps towards tacking macroeconomic challenges which has been raised by several factors over the time and recently by COVID-19 pandemic. The Indian government has recently announced 20.97 lakh crore economic package to tackle such macroeconomic challenges like decreasing aggregate out, employment and inflation which has been put forward by COVID-19 pandemic. Let's discuss different aspects of the package.

The first tranche of economic package was around 6lakh crore. This tranche was primarily focused on MSMe sectors. This package included 3 lakh crore of collateral free loan to MSMe and 50,000 crore of equity infusion. This was a very important step since MSMe employs around 11 crore people.

The second tranche of economic was of around 3,10,000 crore and was focused on street vendors and migrant workers This tranche included 5,000 crore credit facility to around 50 lakh street vendors who will have initial access to rs. 10,000. It also included 2 lakh crore that will be given to the farmers as kisan credit and while 2.5 lakh crore of credit to the fishermen and animal husbandry farmers who will get the access to credit at a concessional rate.

The third tranche of 1,50,000 crore and the package was primarily focused on agriculture and allied sectors including animal husbandry, fisheries and Dairy to strengthen the farm sector of the economy. The package included infrastructure development fund for fisheries. The package included 15,000 crore fund for the development of animal husbandry infrastructure and 5,000 crore for the development of bee keeping infrastructure development. The package also included the 4,000 crore package for herbal cultivation

The fourth and fifth tranche of the package included the reforms in coal, minerals, defence, air space management, space sector, atomic energy and distribution in companies In UTs. This included the commercial mining in the coal sector. Privatizing discoms in metros to function better.

The rest of amount of package was accounted for the steps taken by reserve bank of India which included infusing additional money in the economy by lowering CRR and lowering the repo rate and reverse repo rate.

This are the measures which have been taken by the government up until now to tackle macroeconomic challenges brought up COVID-19 pandemic. The measures mostly addresses supply side of the economy so we can expect some more bold steps to revive demand side of the economy as well.