Atmanirbhar Bharat Abhiyaan VS Economic Package of Other Countries for Coronavirus Stimulus|Imp for UPSC IAS

Atmanirbhar Bharat Abhiyaan economic package announced by PM Modi to revive Indian Economy. Know difference between COVID-19 Relief Economic Packages announced by India & Other Countries. The 20 lakh crore package is valued 10% of India's GDP in 2019-20. Check full details in context of UPSC IAS exam.

May 15, 2020 15:47 IST
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India's Atmanirbhar Bharat Abhiyaan has already gained momentum by being one among the largest Coronavirus Stimulus Packages announced by various nations to fight COVID-19 pandemic economically. This 20 lakh crore worth package is valued 10% of India's GDP 2019-20 and is aimed at making India self-reliant in all aspects. Majorly all the countries across the world have announced their respective economic packages to tide over current situation of COVID-19 crisis including the US, Japan, Germany, and others.

PM Modi's Atmanirbhar Bharat Abhiyan ranks behind the stimulus packages announced by the US, Japan, Sweden, Australia and Germany in terms of spending percentage of the GDP. However, in terms of the value, India's package ranks at 19th position. Smaller economies such as Belgium and Luxembourg have spent fifth of their GDP at 20.7% and 19.2%, respectively.

Here are the details of the economic packages announced by various countries. The countries are ranked on the basis of value of their package in terms of their GDP. The ranks have been decided after analysing the data compiled in 'COVID-19 Economic Stimulus Index (CESI)' by economist Ceyhun Elgin. Have a look:

Coronavirus Stimulus Packages: Country-wise Details

Country

Package Details

Value in terms of GDP

Japan

USD 1.1 trillion recovery package

21.1% of its GDP

United States (US)

USD 2.7 trillion packages (largest in pure dollar terms)

13% of its GDP

Sweden

-

12% of its GDP

Australia

-

10.8% of its GDP

Germany

USD 815 billion package

10.7% of its GDP

India

USD 265 billion (Rs 20 lakh crore)

10% of its GDP

France

-

9.3% of GDP

Spain

€200 billion

7.3% of GDP

Italy

Approx. USD 815 billion package

5.7% of GDP

UK

£1.25 billion

5% of GDP

How is Value of Atmanirbhar stimulus package higher & bigger?

  1. Rs 20 lakh crore worth coronavirus stimulus package is higher that the GDP of a few economies such as Greece, New Zealand, Vietnam, Portugal, and Romania.
  2. India's stimulus value is almost equal to Pakistan's GDP of USD 284 billion.
  3. The package is 1.8 times bigger than the fortune of Top 10 Richest Indians, which is USD 147 billion.
  4. It is five times the wealth of richest Indian, Mukesh Ambani.
  5. The package is the fifth-largest among the G-20 countries in terms of spending in relation to GDP.

What is Difference between Atmanirbhar Bharat Abhiyaan & Economic Packages of Other Countries

New & Old Funding: The economies around the world have announced new spending in their relief packages entirely. Unlike other countries, India's Self-reliant economic package is not totally in new spending and involves 1.7 lakh crore funding that was announced by Government in March 2020 and also includes measures taken by the RBI such as liquidity infusion and cuts in interest rates. The Atmanirbhar package includes:

Rs 1.7 lakh crore  funding announced in March 2020 to provide free foodgrains & cash to poor, poor senior citizens & women

RBI's Rs 3.7 lakh crore liquidity support announced in March 2020 & Rs 2 lakh crore funding announced in April

Government & Central Bank Spending: India's package is not entirely a government spending. The package includes spending of the Reserve Bank of India (RBI). In case of the US, the entire USD 2.7 trillion package is by the Trump Administration and does not include Federal Reserve funds.

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