Indian Prime Minister Narendra Modi on Tuesday announced a massive financial package to revive, reform and make the country self-reliant, while at the same time welcoming foreign capital and strengthening of supply chains .

In a televised address to the nation, Modi talked about new infrastructure and rational tax systems for a quantum leap of growth.

Besides, the Prime Minister announced stimulus measures which will take the total amount announced by the Ministry of Finance and the RBI to a total of Rs 20 lakh crore or 10 per cent of the GDP.

According to the Prime Minister, it is now the time to make India self-sufficient in every way and every Indian should buy and promote local goods.

The PM said that the package will give emphasis on land, labour, liquidity and laws. The package will also focus on the farmers and the labourers who support the nation during the times of crisis.

The PM further said that the package will give rise to a rational tax system, strong financial system besides encouraging businesses and bringing in investments into India.

Industry experts welcomed the announcements, saying that there are many ways in which the schemes announced on Tuesday can be financed, including from the extra Rs 200,000 lakh crore the Centre will get from higher levies on petrol and diesel.

Apart from this, the government has already used the escape clause in the FRBM act.

The announcement came at a time when the official data showed that contraction in manufacturing and electricity sector's output on the back of the Covid-19 outbreak and the subsequent lockdown to curb its spread plunged India's factory production in March 2020.

The factory output crashed by (-) 16.7 per cent during the month under review from a growth of 4.62 per cent in February and 2.7 per cent recorded in the corresponding month of last year.