A gigantic Rs 20 lakh crore relief package was made public on Tuesday by Prime Minister Narendra Modi incorporating recently declared measures to spare the lock down-battered economy, and spotlights on tax reductions for independent ventures just as motivations for local assembling. The consolidated relief package works out to around 10 per cent of the GDP, making it among the most generous in the world after the relief packages declared by the United States, which is 13% of its GDP, and by Japan, which is over 21% of its GDP.
The announced relief package worth Rs 20 lakh crore includes Rs 1.7 lakh crore worth free food grains to poor and cash to underprivileged women and elderly as declared in March, adding to the Reserve Bank’s liquidity measures and interest rate cuts. RBI’s interest rates cuts and liquidity enlistment were around 3.2% of the GDP when the March stimulus was 0.8% of the country’s GDP.
“A special economic package is being announced to make India self-reliant,” PM Modi said in his third address to the nation over COVID-19 pandemic. “This package, taken together with earlier announcements by the government during COVID crisis and decisions taken by RBI, is to the tune of Rs 20 lakh crore, which is equivalent to almost 10 per cent of India’s GDP.”
Most monetary movement in the nation had ground to a halt after the legislature forced a 21-day across the country lockdown starting March 25 to check the spread of coronavirus. The lockdown has since been broadened twice through May 17, with certain relaxations to permit the resumption of financial movement.
As stated by PM, the package shall focus on important factors such as land, labour, liquidity and laws. It will provide support to various strata such as cottage industry, MSMEs, labourers, middle class, and industries.
The detailed guidelines of the relief package distribution will be addressed by Finance Minister Nirmala Sitharaman in the coming few days.
The Prime Minister dropped clues that the package may incorporate tax relief for small, microscale and medium undertakings and motivators to support manufacturing domestically just as pulling in ventures.
The government said it will consider providing full tax exemption to establishments making new investments of a minimum threshold in sectors namely medical devices, electronics, telecom equipment and capital goods.
The relief package is viewed as an administration endeavour to check the world’s fifth-biggest economy tearing towards its first entire year compression in quite a while. As indicated by gauges, lockdown may have prompted 12.2 crores, individuals, losing positions in April and customer request dissipating.
The Prime Minister stressed upon being self-reliant India which stands on five pillars that are economy, bringing upon a quantum jump instead of an incremental jump; infrastructure which shall be the identity of India; technology-driven system; vibrant demography of country; and demand.
As a major aspect of the Rs 1.70 lakh crore Pradhan Mantri Garib Kalyan Package (PMGKP), the legislature declared free wheat or rice in addition to heartbeats to poor just as a money instalment to ladies and poor senior residents and ranchers over a time of a quarter of a year till June.
As indicated by the most recent government information, Rs 34,800 crore money related help utilizing advanced instalment foundation was given to around 39 crore recipients.
Under the Pradhan Mantri Garib Kalyan Ann Yojana 67.65 lakh, MT of foodgrains has been lifted by 36 states/UTs for April 2020. Around 16 LMT of foodgrains have been dispersed, covering 60.33 crore recipients by 36 states/UTs for April 2020.
Around 6 LMT of foodgrains have been dispersed, covering 12.39 crore recipients by 22 states/UTs for May 2020. 2.42 LMT of heartbeats has additionally been dispatched to different states/UTs. Heartbeats have been disseminated so far to 5.21 crore family recipients out of 19.4 crore such recipients.