Is there enough to plug the holes?

"India's economy was weak in 2019, but appeared to be near a trough," wrote Prachi Mishra. Just as recovery was starting came the coronavirus pandemic. "The good news is that global recovery has already begun, and global GDP is rising." The Indian economy is also expected to rebound after a deep contraction in the April-June quarter but "we struggle to see any domestic fundamental forces to drive India's growth ahead". In its last meeting on 6 August, the Reserve Bank (RBI) kept interest rate unchanged at 4%, in expectation of rising consumer inflation in the second quarter. All eyes are now on the government to see what kind of stimulus it will provide to get the economy going again. "Businesses are pinning hopes on more demand-boosting measures from the government, including ramping up the execution of infrastructure projects, more economic reforms and a goods and services tax (GST) rate cut if other steps fail to revive consumption." "Essentially, the economy runs on twin engines: consumption and investment," wrote Anil Padmanabhan. "Consumer confidence fell to a record low in India last month as citizens grew more pessimistic about their jobs, incomes and spending, a survey from the central bank showed." "The survey shows that consumers don't expect an increase in their discretionary spending for the next year," wrote Aparna Iyer. "Analysts hope that the villages generate spending faster than urban centers, given the upbeat outlook on agriculture." But, just as the virus is spreading in the countryside, "In two dozen small towns and villages visited by Reuters reporters in recent weeks, people have largely given up social distancing and masks after months of sticking to the rules, believing the virus is not such a threat." To support local industries Prime Minister Narendra Modi has come up with the policy of 'Atmanirbhar', which means 'self reliance'. E-commerce companies Amazon and Flipkart are hoping for sales of up to $600 million this week. For the first time Amazon beat Flipkart in smartphone sales, grabbing 47% of the market. Amazon is a US company and Flipkart is owned by Walmart. "Chinese smartphones and electronic brands saw sales rise by double digits from the year earlier in sales on Amazon and Flipkart", with vendors running out of stock. Even for brands made in India, "The reality check for Made-in-India smartphones, a major focus of official drive on 'self-reliance', is the value of components sourced abroad is around 85% of a device's cost." Fuel demand fell by 11.7% in July compared to a year ago, showing weakness in business activity. There is unanimous consensus that the government needs to spend more, But, "The fiscal deficit for April-June touched Rs 6.62 trillion, It is already 82% of the budgeted fiscal deficit for the current financial year," wrote Vivek Kaul. The government is expecting a hefty payout from the RBI this year after extracting Rs 1.76 trillion last year, wrote Anirban Nag. But, will it be enough for the enormous Okun's bucket that is India. If only we could mend the holes in the bucket.