In wake of the World Bank’s recent statement on South Asia facing its worst economic performance in 40 years due to the deadly coronavirus pandemic, SAARC countries have rolled out a raft of stimulus packages to boost investments, buffer private businesses and bolster growth.
It advised the governments to “ramp up action to curb the health emergency, protect their people, especially the poorest and most vulnerable, and set the stage now for fast economic recovery”.
India, responded by unveiling a Rs 1.7 lakh crore (USD 22.6 billion) economic stimulus plan, providing direct cash transfer, free foodgrain and cooking gas to give relief to millions hit by the lockdown.
The central bank cut the key interest rate by 75 basis points and provided Rs 1 lakh crore of liquidity to the market. Also, a moratorium on repayment of loans for three months has been provided.
The government has suspended the Insolvency and Bankruptcy Code for 6 to 12 months to give breathing space to companies trying to secure the necessary financing, renegotiating loans, and attempting to secure other reliefs from banks.