India’s Rs 20 Lakh Crore package to foster self-reliance, make India part of global supply chains, PM says

India's Rs 20 Lakh Crore Package To Foster Self-reliance - We The World Magazine
Image of Narendra Modi from Twitter

The Prime Minister of India, Narendra Modi on Tuesday addressed the nation and announced an economic stimulus package valuing nearly 10% of India’s GDP in a 20 Lakh Crore package.

The INR 20 Lakh crore package (the detail of which is scheduled for an announcement by the finance minister on a press conference today) is made to make the nation self-reliant while nurturing better reforms across sectors.

The 20 Lakh Crore package is the third-largest in the world after USA and Japan 

The government is focusing on reforming land, labour, liquidity, and legal framework while supporting cottage industries, middle class, farmers, labours and MSMEs.

According to media reports, India’s stimulus package is the third-largest in the world, after Japan and the US.

The package encompasses the already announced reliefs by RBI and Finance Minister earlier that includes INR 1.7 lakh crores and INR 5.25 lakh crore for free food, cash and liquidity support. The remaining balance of INR 13.1 Lakh crore will be further utilized to foster the nation’s economy hit hard by the pandemic. The coronavirus crisis, Mr Modi said, has made us realize the worth for self-sufficiency.

The PM said the stimulus package will also focus on helping the poor, migrant labourers and the middle class who support the economy by diligently paying tax. “At a time f crisis, it is local (supplies) that has fulfilled our demands,” he said, emphasizing the need for local manufacturing, local markets, and local supply chain.

This announcement comes one day after the PM sat on a virtual roundtable with the CMs of the states and UTs. Mr Modi emphasised, despite the economic stimulus is strongly derived to make India a self-reliant power, he said this will nonetheless foster India as a host to multinationals, especially the ones looking to shift their base from China, Times of India reports.

Outlining five pillars of self-reliant India that are infrastructure, tech-driven systems, economy, vibrant demography and demand, the PM stressed this stimulus package is a part of the “five-pillars.”

Finance minister who is all set to address the nation on 4 PM today tweetedIndian economy has acquired strength in its various dimensions. Now, we can confidently engage with the world. We aim at overall transformation & not incremental changes. We shall convert the pandemic challenge into an opportunity. #AatmanirbharBharat will integrate not isolate.” 

Speaking about the lockdown, the nation is meaning the end of Lockdown 3.0 and the PM stated details of the lockdown 4.0 will be announced by before May 18th. PM highlighted the upcoming lockdown will be unlike the current ones and will be based on recommendations from the states.

Finance Minister’s Updates

Finance minister Nirmala Sitharaman detailed some of the plan’s key takeaways after the PM announced a day before.

  • TDS and TCS (tax deducted at source/tax collected at source) will be reduced to 25% of existing rates for all payments. Rs. 50,000 crores will be released to people, that otherwise would have been paid as tax.
  • Income Tax due dates for the FY 2019-20 will be dragged from July 31, 2020, & October 31, 2020, to November 30, 2020. The tax audit will shift from September 30, 2020, to October 31, 2020.
  • MSMEs will be able to utilize the 3 lakh crore collateral-free loans having a tenure of 4 years and a moratorium of 12 months. Loans will be 100% credit guaranteed and will be available till October 31st, 2020. For more detailed information visit here.

(This is a breaking story and will be updated)