Restarting India: Nirmala Sitharaman's 12 new economy boosters
First Published 12, Nov 2020, 3:06 PM
Finance Minister Nirmala Sitharaman announced 12 new stimulus measures as part of the ‘Aatmanirbhar Bharat 3.0’ package for the economy in the wake of the coronavirus disease pandemic. This is yet another stimulus package ahead of Diwali on Saturday.
Finance minister Nirmala Sitharaman announced 12 new stimulus measures as part of the ‘Atmanirbhar Bharat 3.0’ package for the economy in the wake of the coronavirus disease pandemic. This is yet another stimulus package ahead of Diwali on Saturday.
Scheme 1: 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)
Scheme 2: Rs 10,200 crore additional budget stimulus will be provided for capital and industrial expenditure on defence equipment, industrial infrastructure and green energy
Scheme 3: 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
Scheme 4: Additional outlay of Rs 10,000 crore is being provided for PM Garib Kalyan Rozgar Yojana
Scheme 5: 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
Scheme 6: 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
Scheme 7: 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
Scheme 8: 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
Scheme 9: Finance Minister announces additional outlay of Rs 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.
Scheme 10: 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. 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
Scheme 11: Emergency Credit Line Guarantee Scheme for MSMEs, businesses, MUDRA borrowers and individuals (loans for business purposes), has been extended till March 31, 2021. 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)
Scheme 12: 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. 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