In his fifth speech after the Covida-19 epidemic on Tuesday evening, Prime Minister Narendra Maudie announced the long-awaited stimulus package of Rs. 20 trillion, while announcing the lifting of the national blockade on the 17th anniversary of the epidemic. Mei.
But the 4.0 blockage will be very different from what we’ve seen so far, the Prime Minister said in his prime time TV show. The details of the package and the next blocking period will be announced within a week.
The Prime Minister said a package of Rs 20 trillion, representing nearly 10% of India’s gross domestic product (GDP), is intended to put money into people’s pockets to boost domestic consumption and demand. The package targets different sectors, including crafts, micro, small and medium-sized enterprises (MSMEs), the working and middle classes.
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The package, which is expected to stimulate sentiment in the streets, combines recent government statements in favour of key sectors with measures by the Reserve Bank of India (RBI). In March, Finance Minister Nirmala Sitaraman announced a Rs.1.7 trillion package to combat the crown crisis.
RBI has also made a number of announcements, including for the investment funds and the NBFK. It lowered interest rates, opened a refinancing window and took other measures to free up the credit flow. The impact of these announcements is approximately Rs. 4.5 trillion.
Officials who took part in the mega-package discussion said Wednesday’s FM announcements will be bilateral in nature. The tax measures taken stem directly from public expenditure and are targeted at citizens and beneficiaries.
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This may mean that more and more money is being transferred to the poorest sections of the population with direct services. Tax measures could include tax relief for some of the most affected sectors, as well as incentives for companies, in particular ROI, to retain and retain staff.
The second aspect may relate to liquidity, including a loan guarantee for RSI loans to supplement working capital. Measures could be taken to provide additional credit to sectors such as aviation, services, tourism, logistics, hotels and other sectors that have been relatively severely affected by the embargo.
Another important message in the Prime Minister’s last speech was that buying local produce will form the basis for Aatmanirbhar Bharat, a self-sufficient India. He called on the Indians not only to buy locally made products, but also to talk about buying locally made products. In doing so, he picked up on a point he had made in his first speech on the occasion of Independence Day in 2019.
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The Prime Minister said the stimulus package will help the country achieve the goal of self-sufficiency based on five elements: an economy focused on quantum leaps rather than incremental change, modern infrastructure, technology-driven systems and processes, demographics, and a strong supply and demand chain.
Claiming that the Covid-19 could be part of our lives for a long time, Maudie urges people to take precautions, but to continue if it finds a looser blockade from the 18th century onwards. May hinted, trying to revive a crumbling economy.
The Prime Minister said that Lockdown 4.0 will be different from the three previous versions, which are based on state proposals, and that the new rules will be in place by December 18. May must be published. Maudie called Monday for a statement from the 15 prime ministers. They can communicate their overall strategies for the next blockade.
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The Prime Minister said that Kovid-19 was a crisis, but he gave the country the chance to realize the dream of do-it-yourself in India, so that the India of the 21st century could become the home of the future.
It is time for bold reforms in the areas of land, labor, liquidity and law, reform of the entire agricultural value chain, streamlining tax systems and strengthening financial systems, he said. Recently, the Bharatiya Janata Party (Bharatiya Janata), under the leadership of state governments, proposed amendments to the Labour Law. In the face of fierce opposition, the Maudie government withdrew its bill to reform the land acquisition law in the first year of its first term of office in 2015.
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The total size of the recovery plan, plus previous statements by Sitaraman and RBI, would be around Rs. 20 trillion, or 10% of GDP, if the estimate of nominal GDP in Rs. 204 trillion for 2019-2020 is revised.
As part of the largest economic stimulus package, Kovid-19 was reported by the U.S. Federal Reserve as a percentage of GDP. According to the Statista data portal, it is associated with 11% of GDP, Australia with 9.7% and Brazil with 3.5%.
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Previously, the government felt that the Centre should focus on smaller, targeted advertisements instead of such megaprograms. This situation has changed as a result of three factors. First, the increase in the bond program from Rs.7.8 trillion to Rs.12 trillion by FY21 has provided the government with more spending opportunities. Secondly, the Centre has a better picture of the extent of the economic downturn and what it will be. And thirdly, as the economy gradually opens up, industries, especially small businesses, will need all the support they can get.
Maudie said that Anatmanirbharat bharat is now the only solution.
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To strengthen what India had both the will and the capacity to achieve, Maudie said that India produced negligible amounts of N95 masks and PSA kits when Covid-19 started spreading, but now produces 200,000 masks and PSA kits a day.
He said that local production, local markets and local supply chains were the saviours during the blockade period and that we should make the local mantra of our lives. He said that all current world brands are local at some point and that the Indians can learn how people abroad were proud of them and made them global.
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Maudie said that the definition of self-sufficiency in the world has changed and that people have started to discuss money-centered globalization versus people-centered globalization. He said that the world looks to India with hope, because the spirit of Indian civilization has always maintained its self-confidence, but with the spirit of Wasudhaiva Kutumbakama, where the world is a family.
The Prime Minister stressed the importance of strengthening supply and demand chains. The need of the hour is to increase demand, and to this end, each of the players in the supply chain is strengthened. He promised reforms in agricultural value chains, strong tax systems, better financial systems to attract investment, to pave the way for India to become a bigger player in the global value chain.
We will wear masks, we will support do gasdoori, but we will not let our goals and aspirations be forgotten, said Ms. Kh.
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