With cases steadily dipping and states easing restrictions, the government has come up with a host of schemes to bring relief to a staggered economy.
On Monday, the Indian government flagged off the official reignition of the country’s economic engine with 8 schemes. This is the first economic relief package announced after the second wave ravaged through the country.
Union Finance Minister Nirmala Sitharaman announced the stimulus in a press conference. She said, "We are announcing about 8 economic relief measures, of which four are absolutely new & one is specific to health infrastructure.”
The core focus of the package is extension of loan guarantees, concessional credits and indirect support for sectors hit by COVID-19, and investments in enhancing the country’s healthcare infrastructure.
The stimulus package is pegged at Rs 6,28,993 crore. This includes earlier measures like higher fertilizer subsidies and providing food relief to the needy till November 2021.
Reacting to the announcement by FM Sitharaman, Prime Minister of India Narendra Modi said on Twitter, "The measures will help to stimulate economic activities, boost production & exports and generate employment.
What are the schemes in the economic package?
The new economic package infuses an additional Rs 1.5 lakh crore in the existing Emergency Credit Line Guarantee Scheme (ECLGS).
A new guaranteed loans scheme worth Rs 7,500 crore was announced. This scheme will aid the smallest borrowers with guarantee loans up to Rs 1.25 lakh through micro-finance institutions. Around 25 lakh people will benefit from the scheme. As per the FM, “Focus is on new lending and not on repayment of old loans."
The highlight scheme is a new Rs 1.1 lakh crore loan guarantee facility which will focus on healthcare infrastructure enhancement (pegged at Rs 50,000 crore) in non-metropolitan regions as well as Rs 60,000 crore loans for worst hit sectors like tourism.
Healthcare loans have been capped at Rs 100 crore, an interest rate ceiling of 7.95 percent and a three-year guarantee. Loans for other sectors are capped at 8.25 percent. FM Sitharaman said, “As they progress, we will evolve the description and coverage of the scheme as their needs evolve.”
Another Rs 23,220 crore has been set aside for investment in expanding ICU beds, oxygen supply and workforce capability. The scheme will help supplement healthcare professionals with short term workforce needs through recruitment of interns and final year MBBS students. Paediatric care will be a core focus area.
The export sector will be backed with indirect support, pegged at Rs 1.21 lakh crore, for five years. This will include new seed varieties for farmers and expansion of broadband capabilities to all Gram Panchayats. Five lakh tourists will be able to avail free one-month visas via the scheme. The scheme will initiate once visa issuance starts.
Under the Atmanirbhar Bharat Rozgar Yojana, the period for which the government will be bearing PF liability of employees and employers earning less than Rs 15,000 a month is now extended till March 31, 2022.
An additional year has been granted to large electronics manufacturers to meet their production targets under the Production-Linked Incentive scheme.
The government aims to propel “growth, exports and employment” and also bring economic relief to stakeholders in sectors where COVID-19 hit the worst.
More stimulus schemes over the year cannot be ruled out as the government looks to spur economic recovery.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "DNA Explainer: PM Modi’s Rs 6.28 lakh crore economic recovery plan - Who benefits and how much")
)
)
)
)
)
)
)
)
)
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}