Finance Minister Nirmala Sitharaman will hold a press conference at 4 pm on May 13, detailing the contours of India’s massive Rs 20 lakh crore fiscal stimulus announced by Prime Minister Narendra Modi. Prime Minister Narendra Modi on May 12 announced a massive Rs 20 lakh crore package — almost 10 percent of India’s gross domestic product (GDP) — as the country battles the economic effects of the coronavirus pandemic.
This Rs 20 lakh crore figure, however, includes the previous Rs 1.7 lakh crore stimulus package announced by Finance Minister Nirmala Sitharaman, various government announcements for key sectors and steps taken by the Reserve Bank of India (RBI) since lockdown began on March 24 midnight. These earlier measures now together account to Rs 7.79 lakh crore of the complete package. Addressing the nation on May 12, PM Modi had said the Rs 20 lakh crore package would “allow various sections of the country and those linked to economic system to get support and strength.”
“This package will give a new impetus to the development journey of the country in 2020 and a new direction to the self-reliant India campaign. In order to prove the resolve of a self-reliant India, land, labour, liquidity and laws all have been emphasized in this package,” he added. He had said the Finance Minister would give detailed information about the package inspired by the ‘Self-reliant India campaign’, over the next few days.
Here are key expectations from FM Sitharaman’s address today:
> Credit guarantee scheme for working capital loans of micro, small and medium enterprises
> Incentives for companies and businesses to maintain a stable workforce, especially as the migrant workers’ crisis deepens
> Expansion of direct benefit transfer (DBT) schemes
> Possible hike in MNREGA payments
> Accelerated disbursals under PM-KISAN Scheme
> Expanded economic activity in Green and Orange Zones, and a gradual easing of lockdown
> Details on the resumption of train services, possible resumption of flight services
> Boost for sectors worst hit by the pandemic such as hospitality, tourism, travel, aviation, and auto among others
> Separate announcements by various ministries for their particular sectors – such as non-banking finance companies (NBFCs) and mutual funds (MFs).