South Asia

Sum of Measures 1—5 (Total Package)

Total Package in USD Million: 412,091.65
% of GDP (2019): 14.65%
% of Regional Total Package: 95.98%
Package Per Capita in USD: 301.59
Note: Measures 9 and 10 are added to the sum of Measures 1-5.
Measure Amount (Local) Amount (USD) Details Update Source
01 - Liquidity Support info_outline INR11,819,366,747,737 USD159,041,603,107
01A - Short-term lending info_outline INR9,171,879,440,000 USD123,416,968,165

The Reserve Bank of India (RBI) has introduced (i) open market operations (over 0.1% of gross domestic product [GDP]); (ii) variable term repos (0.5% of GDP) to ease any domestic liquidity pressures; (iii) special refinance facilities for rural banks, housing finance companies, small enterprises (0.2% of GDP); (iv) a special liquidity facility for mutual funds (INR500 billion); (v) 13 May 2020, INR6 trillion worth of RBI liquidity injections into the banking system; (vi) No amount/estimate: extension of the of the small business refinancing facilities; (vii) Term repo operations for an aggregate amount of INR1 trillion at floating rates (i.e., at the prevailing repo rate) in the middle of September to assuage pressures on the market on account of advance tax outflows. In order to reduce the cost of funds, banks that had availed of funds under long-term repo operations (LTROs) may reduce their interest liability by returning funds taken at the repo rate prevailing at that time (5.15%) and availing funds at the current repo rate of 4%.

01B - Support policies for short-term lending info_outline INR2,446,090,420,000 USD32,914,634,941

(i) No amount/estimate: Cash reserve ratio (CRR) maintenance for all additional retail loans has been exempted and the priority sector classification for bank loans to nonbanking financial companies (NBFCs) has been extended for on-lending for FY 2020/21; (ii) The CRR was cut by 100 bps and the ceiling for marginal standing facility was increased to 3% of the Statutory Liquidity Ratio (together with Measure 2A, these comprise around INR3.7 trillion worth of liquidity). These measures have been extended until March 2021; (iii) 20 April 2020, The RBI increased the limit for ways and means advances (a short-term liquidity facility for central and state governments) to 60% (for state) and INR2.0 trillion (for central governments); (iv) Temporary reduction of the Liquidity Coverage Ratio from 100% to 80%; (v) 6 August 2020, Introduced an optional facility allowing banks to manage their day end cash reserve ratio (CRR) balances. Banks will be able to set the amount (specific or range) that they wish to keep as balance in their current account with RBI at the end of the day.

01C - Forex operations info_outline INR201,396,887,737 USD2,710,000,000

The RBI conducted two sell–buy swap auctions to inject United States dollar liquidity into the forex market to a cumulative USD2.71 billion on 16 March and 23 March 2020.

02 - Credit creation info_outline INR4,254,809,580,000 USD57,252,791,199
02A - Financial sector lending/funding info_outline INR1,254,809,580,000 USD16,884,739,382

(i) The RBI introduced long-term repo operations (0.4% of GDP for the first tranche and 0.2% of GDP for the second tranche; 1–3 years); (ii) 6 August 2020, Established special refinance facilities for a total amount of INR650 million for all India financial institutions (AIFIs); (iii) 6 August 2020, Extended INR250 million to the National Bank for Agriculture and Rural Development (NABARD) to back agricultural operations in the wake of challenges posed by COVID-19.

02B - Support policies for long-term lending info_outline
02B1 - Interest rate reductions

(i) 27 March 2020, The RBI reduced the repo and reverse repo rates by 75 and 90 basis points (bps) to 4.4% and 4.0%, respectively; (ii) 17-20 April 2020: The RBI reduced the reverse repo by 25 bps to 3.75%; (iii) 22 May 2020, the RBI reduced the repo and reverse repo rates further by 40 bps each to 4.0% and 3.35% respectively, and reduced the marginal standing facility and bank rates from 4.65% to 4.25%.

02B2 - Other policies to support long-term lending

No amount/estimate: (i) RBI provided regulatory forbearance on asset classification of loans to micro, small, and medium enterprises (MSMEs) and real estate developers and introduced regulatory measures to promote credit flows to the retail sector and MSMEs; (ii) The Securities and Exchange Board of India temporarily relaxed the norms related to debt default on rated instrument and delayed the implementation of the net stable funding ratio and the last stage of the phased-in implementation of the capital conservation buffers by 6 months; (iii) The limit for foreign portfolio investment (FPI) in corporate bonds has been increased to 15% of outstanding stock for FY 2020/21 and restriction on nonresident investment in specified securities issued by the Central Government was removed; (iv) Announced a standstill on asset classifications during the 3-month loan moratorium period with 10% provisioning requirement and an extension of the time period for resolution timeline of large accounts under default by 90 days; (v) Restriction on banks from making dividend payouts; (vi) 22 May 2020, Authorities have also increased the large exposure limit from 25% to 30% of bank capital. Under the extant guidelines on the Large Exposures Framework, the exposure of a bank to a group of connected counterparties shall not be higher than 25% of the bank’s eligible capital base at all times; (vii) 21 June 2020, the RBI directed banks to assign zero % risk weight on the credit facilities extended under the emergency credit line guarantee scheme (ECLGS). As of the first week of November, the Government extended the ECLGS until 30 November 2020, and then further until 31 March 2021; (viii) 6 August 2020, the RBI permitted banks to restructure existing loans to MSMEs classified as "standard” as of March 1, 2020 without a downgrade in the asset classification. Banks are required to maintain additional provision of 5% over and above the provision already held by them for accounts restructured; (ix) 6 August 2020, the RBI also permitted lenders to implement a resolution plan in respect of eligible corporate exposures as well as personal loans, keeping the ownership unchanged, and without classifying them as non-performing loans. 10% provisioning is required; (x) Extant limit for investments that can be held in HTM category is 25% of total investment. Banks are allowed to exceed this limit provided the excess is invested in SLR securities within an overall limit of 19.5% of NDTL only. On 31 August 2020, banks were allowed to hold fresh acquisitions of SLR securities acquired from 1 September 2020 under held-to-maturity up to an overall limit of 22% through 31 March 2021.

02C - Loan guarantees INR3,000,000,000,000 USD40,368,051,817

13 May 2020, INR3 trillion worth of loan guarantees for small and medium-sized companies.

03 - Direct long-term lending info_outline
03A - Long-term lending info_outline
03B - Forbearance

No amount/estimate: (i) The RBI provided relief to both borrowers and lenders, allowing companies a 3-month moratorium on loan repayments. This moratorium was extended to end August 2020; (ii) Provided subsidies to banks to reduce interest rates for short-term loans to farmers. On 4 June 2020, decided to continue the availability of 2% Interest Subvention (IS) and 3% Prompt Repayment Incentive (PRI) to farmers for the extended period of repayment up to 31 August 2020 or date of repayment, whichever is earlier, to prevent increases in interest rate during the extended moratorium period; (iii) 24 June 2020, Approved a scheme for interest subvention of 2% for a period of 12 months to all Shishu loan accounts under the Pradhan Mantri Mudra Yojana (PMMY). This scheme will only apply to certain loans that meet the criteria (e.g. outstanding as of 31 March 2020, not in Non-Performing Asset category).

04 - Equity support info_outline
05 - Health and income support INR14,449,657,303,053 USD194,434,838,251
05A - Health support INR302,000,000,000 USD4,063,717,216

(i) Three measures have already been announced as direct support to income/revenue. The first, mainly devoted to health, totalled around INR150 billion. Prime Minister Modi announced that an additional INR150 billion will be devoted to health infrastructure, including for COVID-19 testing facilities, personal protective equipment, isolation beds, intensive care unit (ICU) beds, and ventilators; (ii) No amount/estimate: Reduction and/or eliminations of tariffs for imports of medical or surgical instruments and supplies along with exemptions fom "health cess"; (iii) 23 June 2020, Allocated from the Prime Minister CARES Trust fund INR2 billion for supply of 50000 ‘Made-in-India’ ventilators to government-run COVID19 hospitals.

05B - Income support INR8,252,598,040,000 USD111,047,101,769
05B1 - Tax and contribution deferrals and policy changes

(i) No amount/estimate: Several measures to ease the tax compliance burden across a range of sectors have also been announced, including postponing some tax filing and other compliance deadlines.

05B2 - Tax and contribution rates reduction

(ii) 12 June 2020, the GST Council provided waiver of late fees and interest as well as reduced the 18% per annum rate to 9% per annum for late furnishing of tax returns for small tax payers.

05B3 - Wage support and subsidies to individuals and households INR3,326,809,020,000 USD44,765,599,635

(i) 26 March 2020, Finance Minister Sitharaman announced a stimulus package valued at approximately 0.8% of GDP. The key elements of the package are (a) in-kind (food, cooking gas) and cash transfers to lower-income households; (b) insurance coverage for workers in the health-care sector; and (c) wage support to low-wage workers (in some cases for those still working, and in other cases by easing the criteria for receiving benefits in the event of job loss); (ii) Numerous state governments have also announced measures to support the health and well-being of lower-income households, primarily in the form of direct transfers (free food rations and cash transfers)-the magnitude of these measures varies by state, but on aggregate measures thus far amount to approximately 0.2% of India’s GDP; (iii) 17 May 2020, an additional INR400 billion was allocated to provide employment boost; (iv) No amount/estimate: 20 May 2020, approved the extension of Pradhan MantriVayaVandanaYojana, a social security scheme for senior citizens, for three additional years until March 2023; (v) 23 June 2020, a sum of INR1 billion has been allocated from the PM Cares Trust Fund for the welfare of migrant laborers; (vi) On 30 June 2020, Prime Minister Modi announced that the provision of food rations to vulnerable households would be extended through end-November (0.4 percent of GDP); (vii) 3 October 2020, The Indian Government will waive “interest on interest" charges for loans of up to INR20 million during its six-month repayment moratorium because of the pandemic. The Government will bear the burden of the money lost by banks because of the waiver, the finance ministry said in the affidavit; (viii) The State Bank of India, a public sector bank with the Government as its biggest shareholder, has announced an interest concession of 0.25% on home loans of above INR7.5 million.

05B4 - Subsidies to business INR2,298,834,230,000 USD30,933,153,105

(i) The more recent measures that were announced in October and November include support schemes targeting certain sectors such as a Production Linked Incentive scheme targeting 13 priority sectors (0.8% of GDP over 5 years), a fertilizer subsidy allocation benefiting the agriculture sector (0.3% of GDP)

05B5 - Indirect income support INR626,954,790,000 USD8,436,314,483

(i) The more recent measures that were announced in October and November include additional public investment (0.2% of GDP) and support for urban housing construction (0.1% of GDP).

05B6 - No breakdown (income support) INR2,000,000,000,000 USD26,912,034,545

(i) Three measures have already been announced as direct support to income/revenue. The second, focusing on nonhealth initiatives, totalled around INR2 trillion. This is on top of the specific measures listed below.

05C - No breakdown (health and income support) INR5,895,059,263,053 USD79,324,019,266

(i) Three measures have already been announced as direct support to income/revenue. The third, which was announced on 13 May 2020, represents USD112.5 billion in fiscal support was announced (which is reflected in 5C), which is part of the USD266 billion support package announced by Prime Minister Modi. Part of this will go towards new measures targeting businesses and expanding support for poor households; (ii) 23 June 2020, the Prime Minister CARES Trust Fund has allocated INR3 billion for both health and nonhealth initiatives; (iii) 12 November 2020, India’s finance minister announced a USD35.14 billion package to stimulate the economy by boosting jobs, consumer demand, manufacturing, agriculture and exports hit by the coronavirus pandemic.

06 - Budget reallocation info_outline
07 - Central bank financing government INR400,000,000,000 USD5,382,406,909
07A - Direct lending & reserve drawdown

20 April 2020, The RBI increased the limit for ways and means advances for the Central Government (a short-term liquidity facility) for the remaining part of the first half of the FY 2020/21 from INR 1.2 trillion to INR2.0 trillion. The WMA is a temporary liquidity facility offered by the RBI to the government that acts as a credit line that the government may call upon to help them reconcile short-term mismatches in cash flows of their receipts and expenditures. As of 8 October 2020, the increase in limit has been extended until March 2021.

07B - Secondary purchase: government securities INR400,000,000,000 USD5,382,406,909

(i) 27 April 2020, INR100 billion purchase of government securities under Open Market Operations (OMO); (ii) 29 June 2020, another INR100 billion purchase of government securities under Open Market Operations (OMO). These two operations, totalling INR200 billion, have long-term maturities ranging from 6 years to 10 years and are meant to replace the concurrent sale of short-term government securities maturing within the next year; (iii) 26 August 2020, Decided to again conduct simultaneous purchase and sale of government securities under Open Market Operation (OMO) for an aggregate amount of INR200 billion in two tranches of INR100 billion each. The auctions would be conducted on 27 August 2020 and 3 September 2020.

08 - International Assistance Received INR480,509,936,120 USD6,465,750,000
08A - Swaps info_outline
08B - International loans/grants INR480,509,936,120 USD6,465,750,000
08B1 - Asian Development Bank INR131,379,884,866 USD1,767,850,000

(i) 7 April 2020, USD0.07 million as a technical assistance under the Regional Project Development Support for the South Asia Subregional Economic Cooperation Operational Plan, 2016–2025; (ii) 22 April 2020, USD1 million under the Strengthening Capacity of the National Urban Health Mission (Supplementary); (iii) 28 April 2020, USD2 million under the Building Capacity for Improved Implementation of Government’s COVID-19 Response and Pro-Poor Economic Package; (iv) 28 April 2020, USD1.5 billion under the COVID-19 Active Response and Expenditure Support Program; (v) USD3 million under the TA 9950: Regional Support to Address the Outbreak of COVID-19; (vi) 14 May 2020, USD0.2 million funding from the ADB and the Republic of Korea e-Asia and Knowledge Partnership Fund under the following project: Strengthening Universal Health Coverage in India: Supporting the Implementation of Pradhan Mantri Jan Arogya Yojan; (vii) 20 May 2020, USD0.12 million as support to address the outbreak of the Coronavirus disease, and to strengthen the health systems preparedness for South Asia; (viii) 20 May 2020, USD22.38 million guarantee from the ADB as part of the Microfinance Risk Participation and Guarantee Program, with another USD22.38 million cofinanced by other institutions. As of 17 June 2020, this amount has been increased to USD24.36 million each. As of 4 July 2020, this amount was again increased to a total of USD29.82 million each. Further, as of 14 August 2020, this amount increased to a total of USD31.79 million each. As of September 2020, the amount has been increased to a total of USD35.28 million each. Finally, as of October 2020, the amount has been increased to a total of USD73.42 million each; (ix) 9 June 2020, additional USD15 million loan to India for sustaining poultry farmer income and food security; (x) 29 June 2020, USD2.5 million under the Regional Program, Planning for Economic Recovery of South Asia from COVID-19; (xi) 23 July 2020, USD3 million funding under the COVID-19 Emergency Response; (xii) 29 July 2020, USD50 million loan under the ReNew Power COVID-19 Liquidity Support Project; (xiii) 6 August 2020, USD20 million Debt Financing to Global Health Private Limited for the COVID-19 Hospital Service Delivery Project; (xiv) 10 August 2020, USD20 million Debt Financing to Apollo Hospitals Enterprise Limited for the COVID-19 Hospital Capital Support Project; (xv) 6 October 2020, USD0.02 million as part of the Capacity Development for the Supply Chain Finance Program (Phase 2) (Subproject 3); (xvi) 20 October 2020, USD22 million loan approved under the COVID-19 Liquidity Support Project; (xvii) 5 November 2020, USD0.09 million under the Creating Investable Cities in Post-COVID-19 Asia-Pacific: Enhancing Competitiveness and Resilience through Quality Infrastructure project of the ADB; (xviii) 6 November 2020, USD50 million in loans under the COVID-19 Livelihood Support Project; (xix) 4 December 2020, USD5.43 million under the COVID-19 Diagnostic Services Project [update].

08B2 - Other INR349,130,051,254 USD4,697,900,000

(i) 2 April 2020, USD1 billion in funding from the World Bank group dedicated towards the country's national health system; (ii) 8 May 2020, USD500 million in funding from the Asian Infrastructure and Investment Bank to support India's efforts against the COVID-19 pandemic, mainly by strengthening the country's national health system; (iii) 14 May 2020, USD1 billion in support from the World Bank to protect India's poorest sectors from the impacts of COVID-19; (iv) 20 May 2020, USD2 million in support from the United Nations Development Group from the UN COVID-19 Response & Recover fund; (v) USD5.9 million in health assistance to help slow down the spread of the pandemic, from the U.S. Agency for International Development (USAID); (vi) 17 June 2020, Asian Infrastructure Investment Bank (AIIB) has approved a USD750 million loan to India to assist the government to strengthen its response to the adverse impacts of the COVID-19 pandemic on millions of poor and vulnerable households; this is co-financed with the Asian Development Bank; (vii) 30 June 2020, USD750 million Micro, Small, and Medium Enterprises Response Program form the World Bank to support increased flow of finance into the hands of MSMEs severely impacted by the COVID-19 crisis; (viii) 19 November 2020 [update], USD120 million loan from the International Bank for Reconstruction and Development (IBRD) approved by the World Bank's Board of Executive Directors to improve and modernize the transport sector of Meghalaya, a hill state located in the north east of India. It aims to support the revival and boosting of development activities affected due to COVID-19 pandemic; (ix) 8 December 2020, USD2 million co-financing from the JFPR under the Asian Development Bank's Strengthening Capacity for Comprehensive Primary Health Care in Urban Areas project [update]; (x) 15 December 2020, USD100 million from the World Bank to support nutrition-supportive agriculture in a tribal-dominated area, with the COVID-19 pandemic and associated response disruspting access to economic opportunities, especially in rural and tribal areas; [update] (xi) 15 December 2020, USD68 million from the World Bank to improve quality of school education in Nagaland, India. The COVID-19 pandemic has further accentuated challenges in India's education system and created additional stress and disruptions; [update] (xii) 16 December 2020, USD400 million from the World Bank as part of a project to protect India’s poor and vulnerable from the impact of COVID-19. [update]

09 - International Assistance Provided INR59,452,955,789 USD800,000,000
09A - Swaps info_outline INR59,452,955,789 USD800,000,000

(i) 15 April 2020, A request was made by Sri Lanka to enter into a Bilateral Currency Swap Agreement with the Reserve Bank of India for USD400 million. As of 25 July 2020, the Reserve Bank of India (RBI) has signed the documents formally extending the facility to Sri Lanka; (ii) April 2020, RBI entered into a swap currency agreement with the facility with the Maldives Monetary Authority amounting to USD150 million. On 1 September 2020, The duration of the currency swap agreement signed between Maldives and India was extended. Presently, Maldives has already received USD150 million under this agreement. In addition, MMA revealed that the Government of India would grant further financing up to USD250 million. As of 20 September 2020, the remaining USD250 million financial assistance has been provided by India to the Maldives.

09B - International loans/grants
10 - No breakdown INR41,796,986,000 USD562,420,966

In October 2020, the authorities announced a new package of measures, with a current-year budgetary impact of 0.2% of GDP, to support consumption (a budget neutral cash voucher scheme and a special festive advance scheme) and public investment (higher capital expenditure by the central government and interest-free loans to states). More details to follow.

11 - Other Economic Measures INR382,500,000,000 USD5,146,926,607

No amount/estimate: (i) Amendments introduced to the export policy of several products; (ii) 17 May 2020, Enhancements to the Ease of Doing Business Act and decriminalisation of Companies Act violations; (iii) 7 July 2020, Decided to partially modify circular No. SEBI/HO/DDHS/CIR/P/2020/41 (dealing with investor grievance report, financial results and accounts maintained by issuers under ILDM Regulations) and extended the timelines for submission to 31 July 2020; (iv) 15 July 2020, Decided to permit Listers who listed or intend/propose to list NCDs/NCRPS/CPs to use available financials as of December 31,2019, pre-coronavirus; (v) 31 August 2020, Announced that various State Governments have offered to sell securities by way of an auction, for an aggregate face value of INR82.5 billion; (vi) 7 August 2020, The Reserve Bank announced the constitution of an Expert Committee under the chairmanship of Shri K.V. Kamath to make recommendations on the required financial parameters to be factored in the resolution plans under the ˜Resolution Framework for Covid19-related Stress; (vii) 31 August 2020, Announced the re-issue of various fixed-rate government equities (stocks) at different years and percentages, for a total of INR300 billion through price-based action; (viii) 22 September 2020, the Parliament adopted the amendment to the Indian Bankruptcy Code, with no insolvency cases until 25 December 2020.

12 - Non-Economic Measures
12A - Measures affecting travel and transport (local and international)

(i) 21 March 2020, A temporary ban for a week on international flights landing in the country for a week; (ii) 24 March 2020, The entire country was placed under lockdown for 21 days which, on 14 April 2020, was further extended to 17 May 2020; (iii) 26 March 2020, Extended ban on all international flights till 15 April 2020, excluding approved all-cargo operations and flights; (iv) 27 October 2020, The latest government announcements extended localized lockdowns till 30 November 2020, under the same guidelines as in “Unlock 5.0”; (v) 21 December 2020, India has followed suit in banning travel to and from the United Kingdom in light of the recent COVID-19 strain. [update]

12B - Measures affecting business and workplace

(i) Businesses and workplaces are included both in the strict lockdowns in 12C, as well as with the relaxing of these measures.

12C - Others

(i) 5 March 2020, Schools closed in some of the municipalities and states, including Delhi until the end of March, which was eventually expanded to all educational institutions in the country; (ii) 12 March 2020, Partial shutdowns was imposed on educational institutions, stadiums, cinema halls, and sports clubs and gathering of people were banned in some of the states, including Delhi; (iii) 15 April 2020, the government announced several relaxation measures in geographical areas designated as non-hotspot, with effect from 20 April 2020; (iv) 30 May 2020, the government issued ‘Unlock 3.0’ guidelines for a phased re-opening of most activities across the country and limiting the lockdown only to containment zones for a month until 30 June 2020. However, states have been empowered to prohibit certain activities if they deem it necessary; (v) On 29 August 2020, the government issued new guidelines (‘Unlock 4.0’) to further re-open the economy in September, removing restrictions on metro rail, and allowing for social, academic, sports, entertainment, and other congregations of up to 100 people. Education institutions will remain closed until end-September, with lockdowns continuing to be implemented in containment zones; (vi) 3 January 2020, India approves two COVID vaccines for emergency use: the Oxford University-AstraZeneca vaccine and the locally developed vaccine COVAXIN [update].