Prime Minister Narendra Modi in his address to the nation on Tuesday the 12th May at 8pm IST, announced that a fourth phase of lockdown will continue beyond 17th May 2020, with new rules, however the highlight of PM s address being on the massive special Government economic package to revive the country’s economy that has been battered by the Covid-19 pandemic.
The total cost of the package will be Rs. 20 lakh crore. The PM said it would be named
“Atma Nirbhar Bharat Abhiyan” literally meaning “self-reliant India campaign”.
This fiscal package, aims to benefit laborers, farmers, honest tax payers, MSMEs and cottage industries, which will equal to 10 percent of India’s GDP. It also makes emphasis on land, labor liquidity and laws, and will pave the way for a self-reliant India, which is committed to make India stronger.
Modi in his speech stated that the reforms will be based on five pillars i.e. economy, infrastructure, system based on 21st century technology-driven arrangements, vibrant demography and demand. “We will have to have an economy which will not bring incremental change but quantum- jump, Infrastructure that will become the identity of modern India, and a strong supply chain he said.”
“These reforms include supply chain reforms for agriculture rational tax system, simple and clear laws, capable human resource and a strong financial system. These reforms will promote business, attract investment, and further strengthen Make in India.” the PM added.
The PM emphasized that India has turned Covid-19 crisis into an opportunity. He said before the pandemic started India did not have personal protective equipment or N-95 masks, which are necessary to protect against the virus. But today, India is manufacturing 20 lakh each of PPE kits and N-95 masks.
“Time has taught us that we must make ‘local’ the mantra of our lives. Global brands in the market today were once local too, but when their people started supporting them, they became global. That is why from today, every Indian must become vocal for our local,” the PM said.
PACKAGE KEY ANNOUNCEMENT MADE BY FINANCE MINISTER AS FOLLOWS:
Rs.3 lakh crore collateral free automatic loan for MSMEs
Rs. 20,000cr subordinate debt for MSMEs
Rs. 50,000cr equity infusion through MSMEs Fund of Funds,
New Definition of MSMEs
Global tender to be disallowed up to Rs.200cr.
Other interventions for MSMEs
Rs.2500cr EPF support for business and workers for 3 more months
EPF contribution reduced for business & workers for 3 months, amount to support of Rs.6750cr.
Rs.30.000cr liquidity facility for NBC/HC/MFs
Rs.45,000cr partial credit guarantee scheme 2.0 for NBFC.
Rs.90.000cr liquidity injection for DISCOMs
Relied to contractors
Extension of registration and completion data of real estate projects under RERA
Rs.50,000cr liquidity through TDS/TCS reductions
Extension of due date for income tax returns for 2019-2020 to Nov 30.2020
Immediate issuance of all pending refunds to charitable trusts: non-corporate business and professions.