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Provisions Of The ARRA Act 2009

ARRA Act 2009

To counter the economic downturn and give a boost to the economy, Indian government also announced and implemented comprehensive stimulus plans. The first stimulus package was announced on 06th December 08 by the central banker, RBI. Following are the key features of the first stimulus package:

These measures were basically to step up demand and arrest the growth moderation. Net liquidity since September 2008 was enhanced by Rs. 300,000 crore ($60 billion). At this juncture it was also expected that the recession will be deeper and recovery longer than earlier anticipated. As the confidence in global credit markets continued to be low the credit lines remained clogged.

India's exports declined in October 2008 for first time in seven years. The demand for bank credit was slackening, despite comfortable liquidity. But inflation, was declining and economy virtually was on the verge of a “deflation”.

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* Contributed by: -
Madhav Kumar Sharma, is a student of MBA at NMIMS, Mumbai. His specialization is in Finance. Before joining NMIMS, he had four years of work experience in the merchant navy as an Engineer Officer. His interests include finance and economics.