Danger! Global Recession Ahead

Nirmala Sitharaman managed more crises than any other finance minister in recent times and she managed them pretty well. But she still has to contend with high inflation, low growth and fewer jobs

- Shwweta Punj

Nirmala Sitharaman

Minister of Finance and Corporate Affairs

WHEN NIRMALA SITHW ARAMAN TOOK over as India's finance minister in May 2019, India's growth was being squeezed by a slowdown in domestic demand and private investment. The country's GDP had been falling in consecutive quarters since the third quarter of 2016-17. The arrival of the Covid-19 pandemic only compounded India's woes as the country went into a stringent lockdown from March 25, 2020. India saw two successive quarters of negative GDP growth, with FY21 ending with growth contraction of 7.3 per cent. India's health infrastructure stood overwhelmed, and millions of Indians employed in its informal economy faced a crisis of livelihood. The FM was in an unenviable position. Across the world, governments were loosening their purse strings to put money in people's hands. Sitharaman, too, was expected to give a direct stimulus to the economy. Her team, however, chose a different, multipronged strategy-multiple relief package for weaker sections of society; help businesses, especially smaller ones, sustain themselves through the crisis; and focus heavily on infrastructure development to create jobs.

WHAT'S DONE

▸ ARs 20 lakh crore stimulus package announced in May 2020

▸ Extended emergency credit line guarantee scheme for MSMES

▸ Reiterated commitment to National Infrastructure Pipeline envisaging an investment of Rs 108 lakh crore between 2019-20 and 2024-25

▸ Announced asset monetization programme to raise Rs 6 lakh crore