On the Road to Recovery: The Role of Post-Lockdown Stimulus Package

Indian economy witnessed a plummeted growth in past few years leading to recession. The entire economic activity all over the globe was disrupted due to the COVID-19 pandemic. To revive the economy out of recession, various monetary and fiscal stimulus measures were announced by the Government of India. The objective of this research was to assess the perception of various stakeholders with respect to the effects of these stimulus measures on reviving Indian economy. Based on the intensive discussion with academic experts and policymakers from corporates, five constructs of monetary and fiscal stimulus measures were developed. Web-based survey was conducted with 250 stakeholders from India. Confirmatory factor analysis technique was applied to confirm the constructs. The path analysis using structural equation modelling revealed that all five hypotheses, that is, monetary policy, labour and land law, taxation and subsidies, general business climates, and employee and consumer-related monetary and fiscal stimulus measures, positively and insignificantly affected economic recovery. This results showed a positive perception of stakeholders about the stimulus measures on reviving the Indian economy. However, the insignificant results suggested that unless these stimulus measures are implemented and monitored properly by the Government of India, they would not revive the Indian economy in near future.