Prime Minister Announces 20 Lakh Crore StimulusMay 13, 2020 11:42 AM
The center has decided to spend 10% of the GDP i.e. Rs 20-lakh-crore stimulus package to boost the dwindling economy and to rejuvenate the business after the lockdown period The plan was announced by PM Modi on Tuesday. Finance minister Nirmala Sitharaman would be giving details of the plan. This particular stimulus is included with all the other packages announced prior to it by the center and RBI. The PM stated that such bold steps are vital to ensure that the country is self-reliant and it would help in dealing with the Pandemic.
The purpose of the package is labor, land, liquidity, and law. It would help regenerate other sectors such as small & medium enterprises (MSMEs), micro, cottage industries. The development in these sectors would help the middle class, and the working class. There will be major tax relief for medium and micro-enterprises. The 1.7 lacks crore stimulus announced on March 26th by the Reserve Bank of India encompasses many programs to ensure that borrowers receive money at the lowest rate of interest.
Total tax exemption is under consideration to companies and various sectors dealing with electronics, telecom, and medical devices. Making land access easier and labor reforms would help the companies to leave China.
The PM spoke about five pillars to make India self-reliant; economy, infrastructure, vibrant demography, and demand. The purpose behind the package is to ensure a quantum jump and not merely incremental change. He intends to ensure that infrastructure would become the new identity of India. Active demography should be present to make India self-reliant. The emphasis was to build a system on 21st-century technology. Also, a proper supply chain is important to ensure that the demand is fulfilled.