Key Highlights: To Revive Economy, Centre Announces Atmanirbhar Bharat 2.0 Measures

To rescue the economy out of its worst contraction, Finance Minister Nirmala Sitharaman is announcing a new stimulus package.

“A number of indicators have are showing that recovery is clearly happening in the economy… The strong recovery is based on the unrelenting reforms that the government has brought in a systematic manner,” Sitharaman said.

KEY HIGHLIGHTS OF CENTRE’S STIMULUS 

Strong recovery of of economy has been evident. PMI rose to 58.9 in October. Strongest increase in output in close to 9 years. Energy consumption growth trended higher in October at 12% YoY. RBI has predicted a strong likelihood of Indian economy returning to positive growth in third quarter itself, ahead by a quarter of the earlier forecast. Prominent economists have suggested that the rebound is not only due to pent up demand, but also strong economic growth.

Inter state portability of ration cards was carried out with effect from September 1, 2020. It now covers 68.6 crore beneficiaries who have have an option to lift their food grains from any FPS of choice in any of these 28 states. Inter state portability is also enabled in these 28 states, about 1.5 cr monthly transactions.

Work on portal for migrant workers has commenced.

Under PM street vendor’s AtmaNirbharNidhi 26.62 lakh loan applications have been received. 13.78 lakh loans totalling Rs 1373.33 crore sanctioned in 30 states and 6 UTs. About 157.44 lakh eligible farmers have received Kisan Credit Cards and sanctioned a limit of Rs 1,43,262 crore in two phases.

Rs 25,000 crore has been disbursed through NABARD for additional emergency working capital funding for farmers.

Under liquidity injection for discoms, Rs 118,273 cr worth of loans have been sanctioned to 17 states.

A new scheme – Atmanirbhar Bharat Rozgar Yojana – is being launched to incentivise creation of new employment opportunities during the COVID-19 recovery phase.

Beneficiaries under the scheme will include: Any new employee joining employment in EPFO registered establishments on monthly wages less than Rs 15,000, EPF members drawing monthly wage of less than Rs 15,000 who made exit from jobs during the pandemic from 1st March to 30th September and is employed on or after October 1.

Organisations hiring new people will get the following benefits: Central Government to provide subsidy for two years at the following scale:
– Establishments employing upto 1,000 employees: Employee’s contribution of 12 per cent and employer’s contribution of 12 per cent totaling 24 per cent wages.


– Above 1,000 employees: Centre will pay employee’s EPF contribution of 12 per cent.

Rs 3 lakh crore existing emergency credit line guarantee scheme extended till March 31, 2021.

Guaranteed credit for supporting stressed sectors to be utilised for 100 per cent  guaranteed collateral free additional credit at capped interest rates. Tenor of additional credit to be 5 years, including one year moratorium on principal repayment. Scheme available till March 31, 2021.

ALSO READ: In First ‘Nowcast’, RBI Says India In Historic Technical Recession

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