The entire nation is now talking about the package of 20 lac crore our honourable prime minister has announced.
We can see a lot of articulation, calculation, doubts, speculation is there in people’s mind. Everyone is trying to understand how will the finance minister provide and chart a plan for the huge amount that our Prime Minister has announced.
From where we received so much assured amount?
The entire nation was asking for financial support from the government and the government was silent. Was it preparing to arrange such a huge amount and a proper plan?
What will be the effect of the amount provided to different sectors? Will it change the lifestyle of us Indians?
How the amount will make us self-reliant?
Let’s try to find out all the answers but before I proceed I will mention that I am not an economist, I have read and heard about the same and gathered some information and simply compiling them with my additional opinion just to share with you.
Let’s first understand what the package is all about and which sectors it will cover.
The package and planning was already in the minds of government, the government was waiting for the right time. It actually wanted this plan to have a proper direction and wanted to give the objective and outcome desired a proper name and hence the delay.
I am saying this because a few days ago, I listened to one interview with Nitin Gadkari where he said that the government is planning to provide support and help to the SME’s and MSME’s.
The exact details of the economic package announced by the government are not yet known but we can speculate that the amount must be from the government’s borrowings, funds and printing of currency notes in nearby future.
The package will cover:
- Land, labour, liquidity and laws
- The package will support business and where self-reliance actually comes, if you have listened to his speech, he said:
The locals have helped us during the pandemic. Now it’s time to be vocal for the local.Narendra Modi
- The package will support India’s cottage industries, home industries, micro small and medium enterprises.
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This is utter truth that in this lockdown few factors constantly kept working; our local grocery shops, local vegetable shops and the online apps. The nearby pharmacy store was open to providing us with medicines. The farmers kept working day and night to feed the country. Before Covid India did not make even a single PPE kits, and today we are self reliant. He said:
The package is for the country’s labour, farmers who have worked in every circumstances, for the countrymen and the middle class who pays taxes honestly and for the industries.Narendra Modi
Now the campaign name comes ” ‘Aatmanirbhar Bharat Abhiyan’ this is actually going to play an important part. As discussed earlier in my blog of labour law where the UP government changed the crisis into a good crisis. Similarly, India can also take this opportunity and try to be self sufficient. India is a capable manufacturer yet we purchase so many products from other neighbouring countries now it’s the time where we come self-reliant.
The decision of the RBI and the package is total of approx 10% of india’s GDP.
The reforms include a supply chain system for agriculture, rational tax system, simple and clear laws, capable human resources and strong financial system.
The package will cover the migrants both in the organised and unorganised sector.
Going In-depth :
The package includes all the pre-proposed and previously announced measures to save the economy in lockdown.
The relief package announced by India is huge, it stands in top 5 of the financial package announced by the United States which is 13% of its GDP and Japan 21% of its GDP and other nations.
The 20 lac package includes the 1.7 lac crore of food grains provided to poor and cash to the elderly and women already announced in March.
It includes the Reserve Bank’s liquidity measures and interest rate cuts with some of them already rolled out.
That’s why in the beginning I said the decision was not made overnight, the government was working on it step by step, analyse all the advantages, disadvantages and situation before bringing this campaign.
As per the Economic Times, an additional 12 lac crore will be pumped into the economy.
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- Giving full tax exemption will give new investment opportunities to the sectors like medical devices, electronics, telecom equipment and capital goods.
- There can be easy access to land and labour reforms, to attract companies invest in India and set up their manufacturing plants and industries. Let’s see how the government will provide lands.
- If actually, this happens, if giant industries take interest in setting up a business in India as we can provide both blue & white collared manpower, there will be growth in business and employment opportunities hence India can actually turn the table.
According to him, a self-reliant India stands on five pillars which will bring in quantum jump.
What is Quantum jump?
Quantum jump is basically a proverb that means a sudden, noticeable and significant advance.
The other factors will be infrastructure, technology-driven system, vibrant demography and demand.
Finance Minister, Nirmala Sitharaman will meet the prime minister on Thursday to finalise the economic package.