Govt measures consist of reforms that need not have waited for Covid-19

Although the intent of these announcements was no doubt sincere and good, markets will get disappointed with them because the immediate spend out of the big fiscal stimulus is relatively small

The focus of the first set of announcements was ensuring liquidity / credit flow to micro small and medium enterprises (MSMEs), help Discoms tide over liquidity crunch, the second set concentrated on alleviating the hardships caused to the farmers, migrant workers and street vendors due to the coronavirus-induced lockdown restrictions. The third set of announcements by the Finance Minister (FM) consisted mainly of providing relief to rural population. Also, the timeframe of spends in some cases extends beyond the current fiscal.

The proposed amendment to Essential Commodities Act, however, is the most exciting part. It is very welcome and can have