HDFC Chairman Deepak Parekh has termed Prime Minister Narendra Modi’s Rs 20 lakh crore economic relief package as “bold and path-breaking move” while calling it “a package for growth instead of survival”.

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“I think it is a very bold move, it is a path-breaking move, it is a move that no one has expected. 10 percent of the GDP is a very large number, Rs 20 lakh crore again is a large number. This is not a package for survival, this is a package for growth, this is a package to get over this problem of coronavirus and how do we put India on another level,” Parekh told CNBC-TV18 on Wednesday.

In a big push to revive the economy amid the ongoing coronavirus induced lockdown, PM Modi on Tuesday announced a Rs 20 lakh crore package - nearly 10 percent of India’s gross domestic product (GDP). This includes government's recent announcements on supporting key sectors and also measures rolled out by the Reserve Bank of India (RBI). Deepak Parekh, chairman of HDFC shared his views and outlook.

Finance Minister Nirmala Sitharaman will address the media at 4 pm today to share more details on the package as announced by the PM during his address on Tuesday.

“I expect some legislative changes - more than legislative, ease of doing business. I think this Rs 20 lakh crore would be utilized for supporting the most vulnerable and SMEs, MSMEs, even middle class he mentioned. PM also talked about middle class and whether he gives some support to the middle class by way of some tax relief or larger deductions for housing loans for six months or a year because housing was in doldrums even before the coronavirus and now it is totally collapsed. So we have to kick-start the housing sector because we need more houses - affordable housing is a great programmed of the PM and we need to start these projects going and we need to create the demand,” Parekh added.

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First Published:May 13, 2020 1:40 PM IST