According to the statement made by the Finance Minister that total stimulus is worth Rs.145,000 crore. This is roughly $20 billion and on a GDP of $2.70 trillion this is less than 1 percent of GDP. This is being done to promote investment and growth. These moves are a part of initiatives that the centre is taking to boost the economy of the country and to bring growth on track. However, the net cost may not be so high. The companies opting for the 22% scheme will also give up on all incentives and rebates so that will be a saving. The next cost to the government will be much lower as will be the net benefit to the companies in India.