Prime Minister Narendra Modi yesterday i.e. May 12, chose to announce a mega fiscal package of Rs. 20 lakh crore(20 Trillion) and planned ‘Lockdown 4.0’ for an indefinite number of weeks from May 17. The economic package is equivalent to around 10 percent of India’s GDP, aimed to revive the economy.
Aatma Nirbhar Bharat
The main component of the package would be “Aatma Nirbhar Bharat” or self-reliant India, Prime Minister Modi stated, addressing the country for the third time on Tuesday evening since the total lockdown in late March.
Corona has already taken around 3 lakh lives worldwide and s
till doesn’t seems to end soon. It will be with us for a long time, and we will have to wear masks, following doh gaj doori (six-foot distance) as told by our honourable Prime Minister.
The package will focus on land, labour, liquidity, and laws. It will cater to various sections, including the cottage industry, MSMEs, laborers, middle class, and migrant workers. Modi said the package would also focus on empowering the poor, laborers, and migrant workers, both in the organized and unorganized sectors seeking to increase productivity, ensuring quality.
There is a probability that the package may include tax relief for SMEs and incentives to promote domestic manufacturing as well as attracting investments. It will encourage local manufacturing as we have seen, it was ‘local,’ which has helped people in India during the time of the pandemic.
Businesses leveraging the use of technology for goods delivery and services and streamlining the direct taxation for broadening the digital outreach can be a key priority for the administration.
The most crucial element of the package is the immediate cash support to this lot. The support can be either direct cash transfer to the poor or in the form of incentives to SMEs to bring them back to work.
The nation waits for the Finance minister Nirmala Sitharaman’s brief to the media today.