Government announces stimulus package of Rs 29.87 lakh crore, which is 15% of GDP

The Union Finance Minister Nirmala Sitharaman has listed 12 new measures on November 12th as a part of the stimulus package during the COVID-19 outbreak. The Centre announced another stimulus package worth Rs 2.65 lakh crore, as a part of Atmanirbhar Bharat 3.0. This amount includes the Production-Linked Incentive (PLI) scheme announced on November 11. Sitharaman said the economy is seeing strong recovery, and COVID-19 active cases are declining.

The breakdown given was as follows:

>> Rs 192,800 crore allocated for Pradhan Mantri Garib Kalyan Package (PMGKP)

>> Rs 1,102,650 crore allocated towards Atmanirbhar Bharat Abhiyaan 1.0

>> Rs 82,911 core for PMGKP Anna Yojana (which has been extended for five months till November)

>> Rs 265,080 crore allocated under today’s set of announcements under Atmanirbhar Bharat 3.0

>> Rs 1,271,200 crore from RBI measures announced till October 31, 2020

>> Total is Rs 2,987,641 crore or 15b percent of GDP

Announcements made under Atmanirbhar Bharat 3.0 on November 12:

- Rs 145,980 crore for Atmanirbhar Manufacturing – PLI scheme for 10 champion sectors

- Rs 65,000 crore support for agriculture in form or fertiliser subsidy

- Rs 18,000 crore for Housing for All under PMAY-U

- Rs 10,200 crore for industrial infrastructure, industrial incentives and domestic defence equipment

- Rs 10,000 crore towards boost for rural employment

- Rs 6,000 crore towards equity infusion in NIIF debt PF to boost infrastructure

- Rs 6,000 crore allocated to Atmanirbhar Bharat Rozgar Yojana (total allocation till date is Rs 36,000 crore)

- Rs 3,000 crore towards boost for project exports

- Rs 900 crore as R&D grant for COVID Suraksha i.e Indian vaccine development

Sitharaman further spoke on the economic status, saying there is “strong recovery.” She said, “Quite a few indicators showing distinct recovery in the economy. Bank credit growth is up 5..1 percent and markets are at a record high. Forex reserves are like never before. The Reserve Bank of India will now come out with a monthly report showing a strong growth.” Sitharaman added that “we could be back to positive growth” as seen in the third quarter itself, adding that “government is maintaining an unrelenting reform pitch.”