Stimulus 3.0: Credit guarantee scheme recast a smart move

Critics may say it's postponing the inevitable, but considering the pros and cons, this is par for the course and the best part of Atmanirbhar Bharat 3.0 package

Last week, Finance Minister Nirmala Sitharaman announced yet another dose of stimulus — a Rs 2.65-trillion Atmanirbhar Bharat 3.0 package. The backdrop of the latest package is very different, with many of the high frequency indicators showing that the Indian economy is on the mend. Tax collection in October crossed Rs 1 trillion; industrial production entered positive territory in September after contracting six months in a row; and exports grew in October. What’s more, bankers are seeing the graph of loan repayment moving northwards and the number of borrowers seeking loan restructuring is far less than what they had anticipated