On Tuesday, the 12th of May, India’s Prime Minister Narendra Modi announced the provision of a Rs 20 lakh crore relief package to provide a supportive pillar to the falling economy as the economy of the country has been completely devastated due to the impact of the COVID 19 pandemic.
This relief package announced by our Prime Minister, Mr Narendra Modi, is a mixture of fiscal and monetary measures. Specifications of this relief package will be announced later today by Nirmala Sitharaman, the Financial Minister of the country.
Under the Atmannibhar Bharat Abhiyan, a portion of this Rs 20 lakh crore relief package includes previous steps and procedures that had been declared by the government earlier. It includes steps and procedures which had been already undertaken by the Reserve Bank of India in order to boost liquidity, which is known to be worth approximately Rs 6.5 lakh crore, and the Rs 1.7 lakh crore package released previously for the marginalised section.
The new relief package could include a mixture of changes in tax, labour and land laws along with the provision of liquidity relief to a huge number of small businesses across sectors that have been affected by the novel coronavirus triggered nationwide lockdown.
Prime Minister Modi announced that the relief package will mainly focus on land, labour, liquidity and laws. Experts have often highlighted the significance of provision of liquidity to jumpstart the economy and also focus on changing land and labour laws for long-term growth. Land acquisition and labour laws have been problems being faced by each sector in the country and several industries have frankly expressed the requirement to ease such parameters as it will further enhance the ease of doing business in the country. Improved labour laws will aid the generation of fixed employment while it shall ease land acquisition rules. This will show faster scaling of various projects that eventually get stuck in bureaucratic red tape.
“The fresh liquidity package will primarily cater to India’s small industries including cottage industries, home industry, small-scale industries, MSMEs, which support the livelihoods of crores in India.”, said Prime Minister Modi in his speech on Tuesday, the 12th of May.