Finance Minister Nirmala Sitharaman is announcing the next steps in the series of stimulus measures announced by the government
Finance Minister Nirmala Sitharaman is announcing the next pre-Diwali stimulus package amid the COVID-19 pandemic.
The measures are expected to further provide relief to sectors worst hit by the pandemic and lockdown, and will list out infrastructure projects which will be expedited to boost job creation.
The announcement comes shortly after Moody's raised its forecast for India’s growth to -8.9% for the calendar year 2020 from -9.6%
Yesterday, the Union Cabinet approved the Production-Linked Incentive scheme for 10 sectors on November 11. The total allocation under PLI would be Rs 1.46 lakh crore over five years. Here are updates from the briefing:
Nirmala Sitharaman's Scheme 12: Rs 900 crore is being provided to Department of Biotechnology, Ministry of Science and technology for research activities related to Covid-19 vaccine development. This does not include cost of vaccine or logistics for vaccine distribution (whatever is required for that will be provided)
Nirmala Sitharaman's Scheme 11: Rs 10,200 crore additional budget stimulus will be provided for capital and industrial expenditure on defence equipment, industrial infrastructure and green energy
Nirmala Sitharaman's Scheme 10: Rs 3,000 crore boost to be given to Exim bank for project exports through assistance given by India to developing countries under IDEAS Scheme. This will help EXIM Bank facilitate these Line of Credit development assistance activities and promote exports from India
Nirmala Sitharaman's Scheme 9: Additional outlay of Rs 10,000 crore is being provided for PM Garib Kalyan Rozgar Yojana
Nirmala Sitharaman's Scheme 8: Rs 65,000 crore fertilizer subsidy will be provided to farmers. Fertilizer consumption is going up significantly, increased supply of fertilizers will ensure that forthcoming crop seasons will not be affected for want of adequate fertilizers
Nirmala Sitharaman's Scheme 7: Government will make Rs 6,000 crore equity investment in debt platform of National Investment and Infrastructure Fund, which will help NIIF raise Rs 1.1 lakh crore by 2025 for financing infrastructure projects
Nirmala Sitharaman's Scheme 6: Differential between circle rate and agreement value in real estate income tax is being increased from 10% to 20%. From today till June 30, 2021, for primary sale of residential units up to Rs 2 crore. The income tax relief provides incentive to middle class to buy homes
Nirmala Sitharaman's Scheme 5: To provide ease of doing business and relief to contractors whose money otherwise remains locked up, performance security on contracts will be reduced to 3%. EMD for tenders will be replaced by bid security self-declaration. Relaxations till December 31, 2021
Nirmala Sitharaman's Scheme 4: Finance Minister announces additional outlay of ₹ 18,000 crore for Pradhan Mantri Awas Yojana (Urban) scheme. The scheme will help ground 12 lakh houses and complete 18 lakh houses. The scheme will create additional 78 lakh jobs and improve production and sale of steel and cement, resulting in multiplier effect on economy.
Nirmala Sitharaman's Scheme 3: There are 10 champion sectors for which the government is launching Production Linked Incentive Scheme. A total amount of nearly 1.5 lakh crore has been earmarked across sectors, for next five years
Nirmala Sitharaman's Scheme 3: Production Linked Incentive worth ₹ 1.46 lakh crore is being offered to 10 champion sectors, this will help boost competitiveness of domestic manufacturing. This will give a big boost to economy, investment, exports and job creation
Nirmala Sitharaman's Scheme 2: Credit guarantee support scheme launched for health care sector and 26 sectors stressed due to Covid-19. Entities will get additional credit up to 20% of outstanding credit, repayment can be done in five years' time (1 year moratorium + 4 years repayment)
Nirmala Sitharaman's Scheme 2: Emergency Credit Line Guarantee Scheme for MSMEs, businesses, MUDRA borrowers and individuals (loans for business purposes), has been extended till March 31, 2021
Nirmala Sitharaman's Scheme 1: More than 95% of all establishments and 65% of all employees in formal sector are estimated to be covered in first category, wherein EPF contributions will be given by govt. by way of subsidy support
Nirmala Sitharaman's Scheme 1: Aatmanirbhar Bharat Rozgar Yojana being launched to incentivize job creation during Covid-19 recovery. EPFO registered establishments -- if they take in new employees or those who lost jobs earlier -- these employees will get some benefits. Effective from Oct 1, 2020. Employees, drawing monthly wage of less than 15,000, will be covered for next 2 years
Nirmala Sitharaman: Utsav Cards being issued by SBI for festival advance. Many employees availing LTC Voucher Scheme. Many steps being taken by Highway and Defence ministries for utilizing Rs 25,000 crore capital expenditure
Nirmala Sitharaman: Under Partial Credit Guarantee Scheme, Public Sector Banks have bought portfolios worth nearly Rs 27,000 crore. To infuse liquidity into discoms, loans worth Rs 1.18 lakh crore has been sanctioned, loans worth more than Rs 31,000 crore disbursed
Nirmala Sitharaman: Under Emergency Credit Liquidity Guarantee Scheme, a total amount of Rs 2.05 lakh crore has been sanctioned to 61 lakh borrowers, out of which Rs 1.52 lakh crore has been disbursed
Nirmala Sitharaman: Happy to say that Rs 25,000 crore has been distributed to help farmers prepare for Rabi sowing, this is over and above the budget allocation
Nirmala Sitharaman: Credit boost has been given to 2.5 crore farmers through Kisan Credit Cards, Rs 1.4 lakh crore has been distributed to farmers
Nirmala Sitharaman: 28 states/UTs have been brought under the national portability of ration cards, with effect from September 1. 26.2 lakh loan applications were received under the PM SVANidhi scheme for street vendors.
Nirmala Sitharaman: Moody's has reassessed India's 2020 GDP growth at -8.9% (as against -9.6% earlier). For 2021, they have revised estimate to 8.6% (from 8.1% earlier). This shows that a positive correction is happening as regards our economic prospects
Nirmala Sitharaman: Improvements recorded in Composite PMI, energy consumption, bank credit, GST collections, market capitalization, FDI. RBI predicts a strong likelihood of return to positive growth in Q3 of 2020-'21
Nirmala Sitharaman: Various economic indicators which show the presence of a strong pitch for recovery in the economy.
Nirmala Sitharaman: A strong COVID-19 recovery scene is emerging, active cases have declined from 10 lakh to 4.89 lakh, fatality rate has come down to 1.47%
Last Updated 12, Nov 2020, 2:37 PM