With 10% of Indian GDP, It’s one of the largest Economic relief packages in the world. United States announced an Economic package of $1.17 trillion which represents 13% of its GDP 2019, Also Japan announced a Corona relief package that represented over 21% of its GDP 2019. On Wednesday the finance minister of India Nirmala Sitharaman said that, The aim of the Economic relief package announced by PM Modi on Tuesday is to restore and strengthen the economy of India which was destroyed by the Covid-19 Crisis. PM Modi calls for the self-Reliant Indian Movement (Atma Nirbhar Abhiyan) by announcing this Special Economic and comprehensive package of 20 Lakh Crores. Modi said “the package is for our Farmers, Labours, Honest taxpayers, MSMEs, and Cottage Industry”. He also addressed the Indian People that ” It’s time to become vocal for our local products and make them global”.
Economy, System, Infrastructure, Demand, and Vibrant Demography.
highlights for this self- Reliant India movement-
- Rs 3 lakh crores of collateral-free automatic loans for MSMEs and other businesses.
- for supporting Stressed MEMEs Govt raise Rs 20,000 crores of Subordinated Debt.
- Rs 50,000 crores of equity infusion for MSME through Fund of Fund.
- It will revise a new definition for MSME, investment limits will be revised upwards.
- Turn of the unfair competition between MSME and Foreign Companies by disallowing the Global tenders up to Rs 200 Crore.
- Rs 2500 Crores of EPF support for business and workers for 3 more months.
- Business needs support to ramp up the production, EPF contribution reduced for business and workers for 3 months and also announced Rs 6750 crores of liquidity support Rs 30,000 crores of special liquidity scheme for MFIs/NBFCs/HFCs.
- NBFCs get Rs 45,000 crores of partial credit guarantee Scheme 2.0.
- DISCOMs get Rs 90,000 Crores for Liquidity injection
- Relief to contractors- Extension of contract date up to 6 months.
- Rs 50,000 crores liquidity for TDS/TCS rate reduction.
Pradhan Mantri Garib Kalyan Package (1)
1.70 Crore of relief package under this Yojana to fight against the coronavirus.
- 50 Lakhs Insurance Cover for all health workers.
- 5 kg of rice/wheat per person distribute to 80 crore poor people for the next 3 months.
- 1 kg pulse per person free for the next 3 months.
- 20 crores of women Jan Dhan account holder get Rs 500 each every month.
- Free of cost Gas Cylinders for 8 crore poor families.
- MNREGA worker’s wage increase up to Rs 202 a day from Rs 182.
- 3 crores poor senior citizens, poor widows, and poor Divyang get RS 1,000 each.
Pradhan Mantri Garib Kalyan Package (2) –
- 8.7 crore farmers get Rs 2,000 each.
- 24% of monthly wages to be credited into their PF accounts for the next 3 months for all wage earners below Rs 15,000.
- 5 crores EPF (Employees Provident Fund) registered workers get a non-refundable advance of 75% of the amount for the 3 months of their wages.
- The limits of Collateral fee lending increase up to Rs 20 lakh from 10 lakh for women Self-Help Groups.
other measures –
- RBI raised the ways and means advance limits of the states by 60%
- For all drawback claimers, Govt implemented “Special refund and drawback disposal drive”
- Announcement of Rs 15,000 Crores for “Emergency Health Response Package”
relaxation for statutory and compliance matters –
- The due date for Income Tax Return extended up to June 30,
- GST return extended up to June 2020