Economic Stimulus

India's economy is facing an unprecedented crisis in the wake of coronavirus pandemic, which has prompted the government to come up with a series of economic stimulus packages since the nation-wide lockdown was imposed on March 25. Economic stimulus package is announced by a government at a time when there's a deep slowdown or a nation is facing recession. India has been under lockdown, which forced industries and business houses to shut all kinds activities, bringing the economic growth engine to a grinding halt.

The government last month came up with an economic stimulus package worth Rs 1.7 lakh crore for millions of poor, farmers, women and senior citizens. That was followed by easing of monetary policy by the Reserve Bank of India (RBI), giving much-needed relaxations to businesses.

The lockdown has not only caused immense problems for the common man but has led to shutting down of small businesses, job losses across the industry, stopping of air and rail travel and has restricted movement of people and goods.

Several economists have already said that India may have entered the recession as 40-day lockdown has caused a major downfall in consumption activity, a major driver of economic growth. The lockdown has also led to fears of banks' non-performing assets rising manifold in the months to come.

As per a Reuters poll, for the first time since the 1990s, India's gross domestic product is expected to shrink. The government is now considering another second dose of relief measures for the common man and a stimulus package for India Inc, which could be significant considering losses suffered in the lockdown period. Rating agency Icra has also estimated the country's GDP might contract by as much as 20 per cent in the June quarter and by 2 per cent in FY21.

Loan relief ahead: Canara Bank, Union Bank ease lending rates after repo cut

Jun 12, 2025, 03:14 AM IST

Canara Bank and Union Bank have cut lending rates following the RBI’s surprise 50 basis point repo rate reduction to 5.5%. The move is expected to ease EMIs and boost credit demand across retail and MSME segments.

From RBI To PMO: Shaktikanta Das’ New Role & Challenges Ahead

Feb 25, 2025, 12:39 AM IST

After six years of steering India’s monetary policy as RBI Governor, Shaktikanta Das is taking on a new challenge — joining the Prime Minister’s Office (PMO) as Principal Secretary (Second) to Narendra Modi. But what does this shift mean for India’s economic future? Das, known for his pivotal role in managing demonetisation, COVID-19 stimulus measures, and inflation control, now has a broader mandate — shaping policies beyond just the financial sector. His tenure at the RBI revolutionized digital payments, tackled bad loans, and reinforced banking regulations, making India a global fintech leader. But his new role comes with fresh hurdles. With Trump Tariffs, global economic uncertainty, and geopolitical tensions looming, Das will need to hit the ground running. Join us as we decode Shaktikanta Das’ journey from North Block to Mint Street, and now to Lok Kalyan Marg — and what his appointment means for Modi’s Viksit Bharat 2047 vision.

LIVE | Unpacking Budget 2025: Nitin Gadkari On Infrastructure And Economic Stimulus

Feb 05, 2025, 02:15 AM IST

An inspiring session at the India Today-Business Today Budget Round Table 2025 with the dynamic Nitin Gadkari, Minister of Road Transport and Highways. Moderated by Sahil Joshi, Managing Editor of Aaj Tak Mumbai Bureau & Mumbai Tak, the discussion focuses on the ambitious capital expenditure (capex) mantra outlined in Budget 2025. In this session, Gadkari talks about the key infrastructure-related announcements made in the Budget, including a significant allocation of ₹1.5 lakh crore in interest-free loans to states for infrastructure projects. He discusses how these investments are designed to create a multiplier effect, driving economic growth and generating demand across various sectors. With a vision for a robust infrastructure framework, the government aims to enhance connectivity and stimulate job creation, ultimately benefiting the middle class and underprivileged communities.

DEA & DFS Secretaries On Budget Growth Push

Feb 02, 2025, 01:04 AM IST

Ajay Seth, Secretary, Department of Economic Affairs, and Nagaraju Maddirala, Secretary, Department of Financial Services, share their take on the budget’s economic stimulus, financial sector reforms, and growth acceleration plans in an exclusive chat with Siddharth Zarabi.

‘Don’t think there is much to be feared...’: Adi Godrej dispels fears of Donald Trump’s tariff threat for India

Jan 21, 2025, 03:52 AM IST

When asked about the upcoming Union Budget and whether stimulus measures might be necessary given the current economic climate, Godrej said, “The government has focused on reducing the budget deficit, but I believe the deficit isn’t a significant issue as long as it contributes to economic growth."

Room for more upside in Gold amid geopolitical uncertainty

Nov 24, 2024, 01:00 PM IST

Gold started October on a weaker note as a healthy US labour market suggested the Fed might hold off on a substantial rate cut. However, prices rebounded from the second week onwards, rising from a monthly low of $2,618 per ounce.

Ruchir Sharma On State Of Chinese Economy & Associated Risks For India

Nov 12, 2024, 12:09 AM IST

Investor and author Ruchir Sharma said while China’s stimulus efforts may help stabilise its economy, it will not be enough to resolve the country’s deepening financial crisis. In an interview with Business Today’s Executive Director Rahul Kanwal, Sharma highlighted that China’s growth is unlikely to exceed 2.5% annually over the next decade. Sharma noted that China is grappling with a multitude of economic challenges, with a full-blown property crisis and a crippling debt burden. “China has a massive debt of about 300% of its GDP, both from the public and private sectors,” he said. He further highlighted that over the next decade, China will lose around 6 to 7 million workers per year due to its ageing population, which will severely hamper its economic growth. “When you have demographics as negative as China’s, it’s very hard for the country to grow in any meaningful way,” Sharma added. Therefore, despite the ongoing economic interventions, Sharma said that China’s challenges will persist, with stabilisation being the only possible outcome in the near term. "The stimulus may stabilise the situation, but there’s no (solution to the) outright financial crisis," he said. In his view, the measures can only manage the existing turmoil without addressing the underlying structural problems, especially in sectors like real estate, which continue to languish. Listen in to know more.

Exclusive Insights From Ruchir Sharma: The Next Big Moves In Crypto, China, And More

Nov 11, 2024, 06:48 PM IST

Investor and author Ruchir Sharma, in an exclusive interview with Business Today’s Executive Director Rahul Kanwal, shared insights into pressing global economic trends, China’s financial challenges, billionaire support for Donald Trump, and the resilience of cryptocurrencies. On China, Sharma predicted that while ongoing stimulus efforts might provide temporary stability, they won’t resolve the country's severe economic issues. He noted that China faces a compounded crisis with a heavy debt burden, a struggling real estate sector, and a rapidly aging population that will reduce the workforce by 6–7 million annually, likely capping its growth at around 2.5% per year over the next decade. Sharma also offered a candid perspective on why Trump continues to attract support from financial elites, despite his unpredictable persona. He quoted a well-known investment banker saying, "I would rather vote for a crazy capitalist than an organized socialist,” which he believes reflects the pro-capitalist sentiment among influential billionaires. Sharma added that Elon Musk embodies the appeal of Trump’s unconventionality to America’s high-profile investors. When discussing the rise of cryptocurrencies, Sharma explained why he believes they’re becoming a mainstay in global asset portfolios. He highlighted that, amid currency instability and economic uncertainty, many investors see both Bitcoin and gold as viable alternatives to the US dollar. He affirmed, "Crypto is here to stay,” noting that while there’s speculative hype around prices, crypto has now solidified its position as a reliable asset class alongside gold. Listen in to know more.

Atmanirbhar push should not degenerate into inefficient ‘import substitution’, says former RBI chief C Rangarajan

Aug 03, 2024, 11:34 PM IST

He said India’s development strategy should be multi-dimensional and growth may be stimulated by raising investment rate, emphasising agriculture, manufacturing and services, absorbing new technologies and promoting a mix of sectors that are employment friendly.

China's new home prices rise at fastest pace in over 2-1/2 years, survey shows

Apr 01, 2024, 05:14 PM IST

China's new home prices have risen rapidly since July 2021, driven by regulatory measures, but sales remain low, indicating uncertainty about a turnaround in the struggling property sector.

China leaves benchmark lending rates unchanged, as expected

Mar 20, 2024, 02:59 PM IST

China's central bank has kept its benchmark lending rates unchanged, in line with market expectations and following recent signs of economic improvement.