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Financial Markets Plunged By 1,069 Points On Monday Clearly Reflecting General Investor In

Financial markets plunged by 1,069 points on Monday clearly reflecting general investor indifference to Finance Minister Nirmala Sitharaman's unveiling of India

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Financial markets plunged by 1,069 points on Monday clearly reflecting general investor indifference to Finance Minister Nirmala Sitharaman's unveiling of India's purported Rs 20 lakh crore coronavirus stimulus packages, announced in five stages over the course of the preceding week. 

The total stimulus has come under intense scrutiny in recent days with several economists remarking of its disproportionate supply-side gearing, while stating that it may fail to address the immediate needs of India's workers, large swathes of whom have been rendered unemployed as a consequence of the nationwide lockdown. 

With the bulk of the package focused on increasing liquidity in the economic system through the provision of loans, and credit guarantees, some estimate that the actual fiscal outlay to be incurred by the exchequer is approximately Rs 2.4 lakh crore. Barclays' Chief India economist, Rahul Bajoria has estimated that the total fiscal bill to the Centre resulting from the measures announced last week could be approximately Rs 1.5 lakh crore. 

In light of this, it is worth breaking down the math behind the stimulus package to learn how the Finance Ministry has arrived at the Rs 20 lakh crore figure – or approximately 10 per cent of India's total GDP. 

Financial markets plunged by 1,069 points on Monday clearly reflecting general investor indifference to Finance Minister Nirmala Sitharaman's unveiling of India's purported Rs 20 lakh crore coronavirus stimulus packages, announced in five stages over the course of the preceding week. 

The total stimulus has come under intense scrutiny in recent days with several economists remarking of its disproportionate supply-side gearing, while stating that it may fail to address the immediate needs of India's workers, large swathes of whom have been rendered unemployed as a consequence of the nationwide lockdown. 

With the bulk of the package focused on increasing liquidity in the economic system through the provision of loans, and credit guarantees, some estimate that the actual fiscal outlay to be incurred by the exchequer is approximately Rs 2.4 lakh crore. Barclays' Chief India economist, Rahul Bajoria has estimated that the total fiscal bill to the Centre resulting from the measures announced last week could be approximately Rs 1.5 lakh crore. 

In light of this, it is worth breaking down the math behind the stimulus package to learn how the Finance Ministry has arrived at the Rs 20 lakh crore figure – or approximately 10 per cent of India's total GDP. 

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