Liquidity Infusion: An Assessment of Atmanirbhar Package Using E3-India Model

The Indian Economy has been facing the structural rigidities in its growth which has been further aggravated by the COVID-19. The pandemic has affected the financial stability of the people, especially the poor and vulnerable sections engaged in the informal sectors. The Government of India launched the ‘Atmanirbhar’ package to provide relief through credit and income support. The given study evaluated on how the package might affect the macroeconomic parameters in the future. It reveals the regional variation in the growth pattern where the backward regions might have limited impact of the support. The employment growth is limited and thus, the Government of India must focus on the labour-intensive manufacturing sectors in addition to the infrastructural development for creating backward and forward linkages among various sectors.