InvestorQ : How can we look back at the one year of the Modi government in the second term that was completed in May 2020?
diksha shah made post

How can we look back at the one year of the Modi government in the second term that was completed in May 2020?

Answer
user profile image
Deepa Salunkhe answered.
5 months ago


The Modi government has just completed one year since it was voted back to power with a thumping majority. As Modi government completes 1 year of its second term, the COVID-19 may actually prove to be a blessing in disguise for the government. De-growth in 2021 is now acceptable but COVID-19 has allowed the Modi government to seamlessly change its narrative from “Achhe Din” to “Atma Nirbhar”. Also, the growth slump means that rating agencies and economists may not be overly worried about fiscal deficit overshooting as long as the measures are growth accretive. That will allow the government to announce massive stimulus even at the cost of fiscal prudence. The government has already announced a stimulus of Rs.20 trillion (both direct and indirect. If the government also manages an economic recovery in the next two quarters, then it may be the icing on the cake.