After the Prime Minister of India declared 20 lakhs of package crores. Indian finance minister Sitharaman, in the words of Modi, rolled out the first installment of the economic stimulus of 20 lakh crores. The finance minister said they were offering small enterprises, non-banks (NBFCs), and power distribution firms loan guarantees and funds. They aim to infuse liquidity to the sectors that are worst affected by COVID19 as of the first installment of this package. The majority of the package falls under the categories of assurances that do not entail an immediate budget allocation, suggesting a small effect on the company deficit and a variety of places to benefit alternative sectors.
Tax relief by Sitharaman:
The TCS and TDS were reduced by 25 percent to leave more cash in the hands of the Indian government of the salaried person. Contract payments, professional fees, interest, rent, dividend, commission, brokerage, etc. would be liable for this discounted TDS rate, which will be valid from 14 May for the remainder of FY21.
Non-Fund Measures :
To encourage MSME units Indian government is hardly infusing the amount to increase the size of the units. For this government is ready to pass G.O, the projects which are under 200 crores should be given to domestic companies.
Changing the definition of the MSMEs will be a game-changer and enable them to grow and expand. This should get an increase in the credit cycle, moving and, hopefully, the risk aversion of banks eliminated,” said NITI Aayog CEO Amitabh Kant.