The Union Finance Minister of India, Nirmala Sitharaman has lately announced 12 key measures, as part of the Indian government stimulus to the economy, under Aatma Nirbhar Bharat 3.0. The net stimulus announced amounts to INR 2.65 Lakh crore. She also informed that the total stimulus announced by the government and Reserve Bank of India (RBI) till date, to help the nation tide over the COVID-19 pandemic, works out to INR 29.87 lakh crore, which is 15 per cent of national GDP. Out of this, a stimulus worth 9 per cent of GDP has been provided by the government.
Here are 12 Key announcements that were made by the Finance Minister as a part of Aatma Nirbhar Bharat 3.0
1) Aatma Nirbhar Bharat Rozgar Yojana
A new scheme is being launched to incentivize job creation during COVID-19 recovery. If EPFO-registered establishments take in new employees without EPFO numbers or those who lost jobs earlier, the Yojana will benefit these employees. The scheme will be effective from October 1, 2020.
2) Emergency Credit Line Guarantee Scheme
ECLGS for MSMEs, businesses, MUDRA borrowers and individuals (loans for business purposes), has been extended till March 31, 2021. Credit guarantee support scheme is being launched for the Healthcare sector and 26 sectors stressed due to COVID-19. Entities will get additional credit up to 20 per cent of outstanding credit; repayment can be done in five years (1 year moratorium + 4 years repayment).
3) Production Linked Incentive
Production Linked Incentive worth INR 1.46 Lakh crore is being offered to 10 champion sectors.This will help boost competitiveness of domestic manufacturing. Will give a big boost to the economy, investment, exports and job creation. A total amount of nearly 1.5 Lakh Crore has been earmarked across sectors, for next five years.
4) INR18,000 Crore Additional outlay for PM Awaas Yojana - Urban
This is over and above INR 8000 Crore already allocated this year; will help ground 12 Lakh houses and complete 18 Lakh houses; will create additional 78 Lakh jobs and improve production and sale of steel and cement, resulting in a multiplier effect on the economy.
5) Support for Construction Infrastructure Relaxation of Earnest Deposit Money Performance Security on Government Tenders
To provide ease of doing business and relief to contractors whose money otherwise remains locked up, performance security on contracts will be reduced to 3 per cent. EMD for tenders will be replaced by bid security self-declaration. The relaxations will be till December 31, 2021.
6) Income Tax Relief for Developers Home Buyers
Differential between circle rate and agreement value in real estate income tax is being increased from 10 per cent to 20 per cent. This is for primary sale of residential units upto INR 2 crore (from date of announcement of this scheme, till June 30 2021). The Income Tax relief provides incentive to the middle class to buy homes.
7) Platform for Infra Debt Financing
Government will make INR 6,000 crore equity investment in debt platform of National Investment and Infrastructure Fund, which will help NIIF raise INR 1.10 Lakh crore by 2025 for financing infrastructure projects.
8) Support for Agriculture: INR65,000 Crore for subsidized fertilizers
As fertilizer consumption is going up significantly, increased supply of fertilizers will ensure that forthcoming crop seasons will not be affected for want of adequate fertilizers.
9) Boost for Rural Employment:
Additional outlay of INR 10,000 Crore is being provided for PM Garib Kalyan Rozgar Yojana. Funds can be used for MGNREGA or for Gram Sadak Yojana, this will help accelerate rural economy .
10) Boost for Project Exports
INR3,000 Crore boost to be given for project exports through assistance given by India to developing countries under Indian Development and Economic Assistance Scheme (IDEAS Scheme). This will help EXIM Bank facilitate these Line of Credit development assistance activities and promote exports from India.
11) Capital and Industrial Stimulus
INR10,200 Crore additional budget stimulus will be provided for capital and industrial expenditure on defence equipment, industrial infrastructure and green energy.
12) RD grant for COVID Vaccine
INR 900 Crore is being provided to the Department of Biotechnology for research activities related to COVID-19 vaccine development. This does not include cost of vaccine or logistics for vaccine distribution (whatever is required for that will be provided)