Covid-19 has hit the world badly and India does not lie untouched by its effects either. It seems as if the world has been brought to stand-still by a minute creature which no one even can see by a naked eye. However, effect caused is catastrophic and certainly not unmissable. It has compelled the human race to adopt new measures to survive, least to say.
Revival of Indian Economy – an attempt to achieve Atmanirbhar Bharat
Prime Minister Narendra Modi addressed the nation as frequently as possible to keep everyone in loop, and sometimes to raise hope. His task is not restricted to fighting the virus, he also has to look after the concerns related to the future of the Nation. Lockdowns, economic relief packages and certain activities announced by him were purely an attempt to let no one feel alone or left out.
With the passage of time, it has become quite evident that human race will have to learn with virus around. Taking precautions and not depending too much on others are two important and easy things anybody can do to design his or her own war path. While the first phase of revival began with Covid-19 Relief Fund, that focused entirely on the poor and downtrodden, now the new phase focusses on reviving the industrial framework of the country.
Covid-19 relief fund opened the treasure of cheap food, the most basic necessity. It covered announcing 500Rs monthly help to Jan Dhan Yojana account holders for three months. Online ration card facility to ensure that every resident of country belonging to the lowest ladder of society gets food at subsidized rates. One nation, one ration card further simplified the procedures and gave easy access to food materials from wherever the migrant workers, or laborers are. Now, how the new phase of revival of Indian Economy will be different from it, we will discuss in a short while. First, let’s understand what PM’s speech covered.
Some key points of PM’s speech that talked about making India Inc. a self-reliant economy or Atmanirbhar Bharat are:
Local ke liye Vocal
As per PM’s speech, India needs to leverage the strength of local makers and sellers to the advantage of Indian economy. A boost can surely be achieved when the consumers are preferring local vendors and sellers over multinational firms. So, small kirana stores, small scale industries engaged in food, clothes, machinery, and so on are to be boosted by making them the primary buying points. PM further has suggested that best quality and persistence in delivery of quality made any local a global brand. So, to strengthen the local makers, sellers, dealers, it is essential to prefer local over global. Buy local so much that it becomes global one day.
Make In India Package
Almost whole world is taking measures to corner China because of its irresponsible take towards Covid-19. Indian manufacturing abilities are the finest in the world. So, why not put it to use to create more earning opportunities? Perhaps, this is the notion behind Make in India Package. PM suggests that India should work towards inviting foreign players to start their manufacturing bases in the country. Many nations are winding up their bases from the country deemed fully responsible for Corona outbreak. This situation has created opportunity for India to invite and encourage manufacturing of goods in India, which will create lots of employment opportunities for daily wages laborers, skilled and semi-skilled laborers, etc.
20-lakh crore package
After taking care of poor and unprivileged class, PM hinted over another economic relief package. It is a 20-lakh crore package. This mammoth amount package is segregated systematically into five tranches, as explained by Finance Minister Ms. Nirmala Seetharaman.
20-lakh crore package – Key points
India has to learn to survive while acknowledging the presence of a deadly virus around. Self-control, precautionary measures and practice of social distancing are going to be the key tools that every citizen will have to wield to stay in action, and to continue contributing to economy in their own way. Rising back to glory certainly would require a trajectory and this is exactly what our FM has provided in 20-lakh crore package. This trajectory speaks of strengthening themanufacturing industry, regulating the demand and reviving the supply chain to see India back into action.
Five core tranches of 20-lakh crore package are:
Tranche 1: MSMEs support package – Rs 5,94,550 crore
MSMEs are the backbone of India’s supply chain. It contributes about 29% of national GDP and gives employment to about 11 crores of people. Food, shelter or clothing, every basic need is dependent on the sound state of MSMEs. To give them much-needed support, measures announced are:
- 3-lakh crore collateral-free free finance scheme
- 50-thousand crore fund of funds to infuse liquidity in MSMEs
- 30,000-crore worth liquidity relief plan for HFC, NBFCs, and others
- 90,000- crore worth liquidity relief package for power distribution companies
The relief is extended to real estate developers too. They are being given more time to register and intimate completion date of projects in order to give assurance to home buyers of receiving the property the earliest possible.
Tranche 2: Migrant workers, street vendors support package – Rs. 3,10,000 crores
This tranche focuses on the safeguarding interests of migrant workers and street vendors.
- ‘One nation, one ration card’ announcement to give migrant workers access to all ration depots situated anywhere in country
- 5,000 crore package – To give 50,00,000 street vendors initial working capital support of Rs10,000 each
- 2 lakh crores to farmers through Kisan credit cards
- 2.5 crores farmers, fishermen and animal husbandry will be given access to institutional credit at discounted rates
- 11,000 crore – funding of food and shelter of migrant workers
Tranche 3: Agriculture and allied sectors comprising of dairy, fisheries, animal husbandry –Rs 1,50,000 crore
- 1,00,000 infrastructure fund – farm-gate infrastructure set-up support to strengthen post-harvest management infrastructure and cold chains establishment
- Rs 20,000 crore – to fund fishermen under Pradhan Mantri Matsya Sampada Yojana
- Rs.10,000 crore – formalization of micro food enterprises
- Rs 4,000 crore – herbal cultivation
- Rs 15,000 crore – Animal Husbandry Infrastructure Development Fund
- Rs. 500-crore – bee-keeping related infrastructure support fund
Tranche 4 and 5 – minerals, coals and ores miners, defense, space, airports – Rs. 48,100 crores
Mostly subjective in nature, it talks about:
- Reforms in sectors such as air space management, defense programs, coals and mineral mining commercialization, distribution network strengthening in UTs,
- Private participation in space sector
- Privatizing discoms in metros
(Source: The Hindu)
There is an additional allotment of Rs 40,000 crore to give impetus to job creation under Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). Consolidation of PSUs in strategic sectors, and insolvency caused due to Covid-19 not to be categorized under defaulter are some of the bold steps announced by the FM.
20-lakh crore package break-up in a nutshell
Source: Finance Ministry – Atmanirbhar Bharat — Part 5 – Government Reforms and Enablers