The finance minister announced a slew of measures today to provide relief to the pandemic-impacted segments, enhance medical/health infrastructure, revive tourism, boost exports, and provide an overall fillip to economic growth and employment in the economy. We had expected the government to time the stimulus with the unlocking process for a better multiplier effect, though it has come slightly ahead of our expected timeline. We expect additional measures focused on the demand side to be announced around the festival season, assuming there is no third COVID wave. The financial implications of measures announced today are estimated to be ~Rs 6.28 lakh crores (~2.8% of FY22 GDP, taking GDP estimate in the budget), though part of this will be spread over five years.
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