The COVID-19 pandemic has had a significant influence on global trade and commerce, as well as economic indicators such as GDP, private consumption, job creation and new investments. India, too, has suffered because of unforeseen economic disruptions caused by temporary limitations on public activities and regional lockdowns.
According to statistics provided by the National Statistical Office under the Ministry of Statistics and Programme Implementation (MOSPI), India’s GDP increased by 4% in FY20; however, it contracted by 7.3% in FY21. With a potential of a revival in consumption and investment in the third quarter of 2021, India's GDP growth rate for FY22 is projected to be 11% (Economic Survey 2020-21).
The Government of India proposed several fiscal and monetary relief to encourage growth and build a self-reliant India amid severe economic repercussions of COVID-19 and subsequent lockdown restrictions. On June 28, 2021, Mrs. Nirmala Sitharaman, Union Finance & Corporate Affairs Minister, announced a series of measures to lend relief to various sectors hit by the pandemic's second wave. The Rs. 6.28 lakh crore (US$ 84.9 billion) relief and stimulus package focuses on enhancing healthcare facilities (especially for children), extending inexpensive credit loans to small firms in the agriculture, exports and tourism sectors, and temporarily waiving off visa fees to attract foreign tourists.
This package is the fourth edition of relief measures extended to individuals and businesses in tandem with efforts to boost the economy amid COVID-19. The relief package comprises a total of 17 measures including additional subsidy for DAP (Diammonium Phosphate) and P&K (Phosphatic and Potassic) fertilisers, and extension of the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) until November 2021.