Govt Working On A Fourth Stimulus Package Which May Be Unveiled Before Diwali; Likely To Involve Major Infra Push

The government is likely to unveil its fourth stimulus package to energise the Indian economy close to the coming festival of Diwali, reports Moneycontrol.

The Government had earlier brought out the Gareeb Kalyan Yojana in March, Aatmanirbhar Bharat package in May, and a host of measures involving increased capital expenditure support and festival bonus and LTC schemes for central government employees.

The fourth set of stimulus measures is likely to involve an infrastructure-building push with a focus on urban projects, sector-specific interventions for hospitality and tourism industries, and an extrapolation of the production-linked incentives (PLI) scheme to more sectors in a bid to attract investments, boost manufacturing and create new employment opportunities.

Regarding the infrastructure push, the government is likely to focus on quick-gestation projects in Tier-1 to Tier-4 cities. It also plans to identify 20-25 projects from the National Infrastructure Pipeline (NIP) for the same and pump money into them expeditiously.

The development comes after the Principal Economic Advisor Sanjeev Sanyal had said recently said that the government was considering sector-specific interventions for the industries badly hit by the Covid-19 pandemic, including hospitality and tourism.