The Indian government has announced stimulus worth $266 billion to mitigate the impact of Covid-19 on the economy. The country’s apex bank, the Reserve Bank of India (RBI), has pumped in liquidity worth $125 billion to stabilise the financial market ever since the pandemic started early this year.
The Narendra Modi government on Wednesday signed a $1 billion pact with the New Development Bank (NDB) to support India’s ambitious economic stimulus plan to bail out the economy from the impact of Covid-19.
The federal Ministry of Finance said in an official statement that the pact proposes creation of durable rural infrastructure assets and generation of employment opportunities for the rural poor, especially migrant workers who have returned from urban areas and lost their livelihoods due to the COVID-19 pandemic.
The $1 billion loan from the NDB has a tenure of 30 years, including a 5-year grace period.
The NDB funding will facilitate “economic activity” and “employment generation to stimulate demand”.
The NDB was established based on the inter-governmental agreement among the BRICS countries of Brazil, Russia, India, China, and South Africa in July 2014.