Prime Minister Narendra Modi said the government will announce a large economic package and bold reforms to make India self-reliant and emerge from the setback of Covid-19 disruption. Rs 20 Lakh Crore Economic Package The total package, including fresh measures and the earlier steps announced by the finance minister and the Reserve Bank of India, will be worth Rs 20 lakh crore, Modi said while addressing the nation.
Finance Minister Nirmala Sitharaman had announced relief for the poor worth Rs 1.7 lakh crore and the Reserve Bank of India unveiled a series of liquidity measures and cut rates to their lowest since 2004 to help the economy during the stress stemming from the new coronavirus lockdowns.
Now starting tomorrow, Sitharaman will announce the details of the new package that will give “India a new speed in 2020”, Modi said.
The fresh measures to make India self-reliant on all aspects will stress on:
Economy: that makes quantum jumps
Infrastructure: the identity of a modern India
System: a 21st century technology-driven system
Demography: a vibrant demography
Demand: we must increase demand, improve supply chain
Focus On MSMEs, Farmers, Labourers The package will focus on land, labour, liquidity, and laws. India needs reforms to bring a rational tax system, simpler laws, better infrastructure, strong financial system, and initiatives to attract investments, Modi said. It is necessary India becomes an important part of the global supply chain, he said. The measures will focus on small businesses that employ crores of people, labourers, farmers, middle-class and entrepreneurs.
Vocal About Local
The pandemic has made India realise the importance of local manufacturing, local markets and local supply chains, Modi said. During the crisis, “‘local’ fulfilled our demand and saved us. The global brands were once local, and then became local to global. Here on, every Indian needs to be vocal about local by not just buying local products, but also promoting them,” he said.
“The new coronavirus will be a part of our lives for a while, but we cannot let it consume us,” he said, adding: “We will wear masks, maintain social distancing.” Lockdown 4.0 will have new rules, and will be announced before May 18 when the central government receives suggestions sought from states, he said.
Source: Bloomberg | Quint