The government last week announced fresh stimulus measures under the Atmanirbhar 3.0 stimulus package. There are total 12 fresh measures amounting to Rs 2.65 lakh crore. This support to the COVID-hit economy is welcome. Experts believe that the move would have a multiplier effect on the economic growth trajectory. Demand, job creation, private investment, exports – all should get a big boost as a result of these measures, which, in turn, are expected to economic rebound over the coming quarters

Among the new stimulus measures, 'Atmanirbhar Bharat Rozgar Yojana' has been announced to incentivise creation of new employment opportunities. Under the scheme, the central government will subsidise the Employees' Provident Fund (EPF) contributions for two years. Also, an additional outlay of Rs 10,000 crore for the Pradhan Mantri Garib Kalyan Rozgar Yojana has been announced. This measures are expected to provide a further boost to rural employment.

The ECLGS scheme for MSMEs, MUDRA loan borrowers and individuals has been extended till March next year. This move is expected to give a much-needed relief to our entrepreneurs who have been bearing the brunt of the ongoing pandemic. Additionally, it was also announced that the Centre will also allocate Rs 18,000 crore more to the Pradhan Mantri Awas Yojana (PMAY) – Urban. The package also includes measures –including an increase in the permitted differential between the circle rate and the agreement value of housing units to boost demand and provide liquidity for the sector.

Meanwhile, the RBI estimates that India's GDP growth for the second quarter of the current financial year was negative and the GDP contracted by 8.6 percent during the quarter. In other words, we are going to enter into a technical recession for the first time in history with two successive quarters of negative growth. Though this is not a big concern, but calls for for comprehensive reforms instead of relying just on stimulus measures, to push the economy back on track.

I invite your opinions.