Special Economic Package | आर्थिक पैकेज 20 Lakh Crore: PM Modi Address to Nation Today: As you know the third phase of the lockdown is going to end on May 17. At this time we the nation is fighting against Coronavirus and all rich and poor people are getting affected by this, the nation expected something big from PM Modi. When the news of PM Modi to address the nation came out then the people have started to wait for it eagerly. As expected, Prime Minister has made some big announcements in his speech tonight. Here have a look at the important points of the PM’s Speech.
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Important Points of PM Modi’s Speech
Many were expecting that on tonight’s speech the PM will announce the fourth phase of lockdown as the Corona cases are increasing day by day in the country. But PM Modi said, “Scientists say that the novel coronavirus will be a part of our lives for a very long time. But we can’t let our lives remain confined around it. We will wear masks and maintain social distancing but we will not let it (the virus) affect us.” With this statement PM wants the fellow Indians to resume their normal lives with some precautions. It is right somewhere too as lockdown in a big country like India cannot be continued for a longer period.
आर्थिक पैकेज: All the businesses have been stopped and all big and small businessmen are badly affected by this lockdown. While talking about the steps that the country has taken so far against the pandemic, PM Modi said that we will not give up in this fight against Coronavirus.
He also mentioned that now the world believes that India can also contribute to the betterment of mankind. To help everyone affected due to lockdown the PM also announced a complete package worth Rs 20 lakh crore. In his speech, PM Modi told the nation that adding that the announcements made by the govt so far, the decisions of the RBI and today’s package adds to Rs 20 Lakh Crores. The worth of this package is 10% of India’s GDP.” Along with the package the PM talked about the ‘Atmanirbhar Bharat Abhiyan’.
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In his speech, PM Modi informed the nation that now the country is producing a huge quantity of PPE kits and masks. The problem of COVID-19 brings an opportunity for India to be self-dependent and to depend on in-house production. He also said that during the difficult time only local brands and businesses helped us so why don’t we promote them. In continuation of his speech over the economy he said, “This era of self-reliance will be our new pledge, we have to move on with new resolve.”
What Will Be The Economic Package?
PM Modi Special Economic Package: The present situation the country is facing is rare as it never happened that all the businesses shit down immediately. So the loss of this lockdown is also unimaginable. Many small businesses are in such a big loss that they may not get up again. Many people have lost their jobs and many are on leave with pay.20 Lakh Crore Sahayata in this time when people have no earning all the expenses are the same as rent, EMIs, and expenses on other essential things. So, to help them the central government announced this package. The detailed information about it will be given by the Finance Minister Nirmala Sitharaman.
On 12 May 2020 when PM Modi announced a package 20 lakh crore then every Indian was eager to know the detailed information about it. During the period of COVID-19, it becomes important for the government to take some steps for the betterment of the lower and middle-class people and in today’s press conference the Finance Minister Nirmala Sitharaman has announced about it. The Finance Sitharama informed that daily she and people from her department will announce the package and its use for different sectors.
As you all must agree that 20 lakh crore is a huge amount and when the Indian government released this amount as relief fund then you can expect many things to be changed in the country. In this article, we have compiled about the ‘Aatamnirbhar Bharat’ and the detailed information about the package given to MSME. Further, you will also get to know about its benefit to ordinary India.
20 Lakh Crore Package: An Overview
|Article Category||Government Scheme|
|Package Announced By||PM Modi|
|Funds will be released by||Central Government|
|Beneficial To||Different Sectors|
First Announcement on Package
The lockdown imposed on the country due to COVID-19 has affected the MSMEs badly so the first announcement the FM made is related to this sector only. Here are the key points that the central government has announced for MSMEs;
- The central government has announced up to Rs 3 lakh crore of collateral-free loans for MSMEs. The tenure of the loan will be 4 years and it will have 12 months moratorium period. This loan will help the MSMEs to stand in this stressed time. MSMEs can apply for the loan until the end of October 2020.
- To help the MSMEs the government has also banned the procurement of up to 200 crores from foreign companies.
- The period of Vivad se Vishwas scheme has also been increased by the government. Now the firms can make the payment till 31st December 2020 without and fine.
- A special liquidity scheme of Rs 30,000 crore for NBFCs/HFCs/MFIs have also been introduced by the Finance Ministry to ease the flow of credit in the market.
- The government will release all the pending funds to charitable trusts and non-corporate businesses.
- The central government has also announced 6 months of extended periods to the contractors and builders to complete their projects.
- The government will also release a fund of up to Rs 50,000 crore for equity support to MSMEs with growth potential. To help maximum MSMEs the government has also revised its definition. Here are the new criteria and the definition of an MSME;
What Are The MSMEs?
With some announcement to give relief to the tensed MSME sector, the Finance Minister has also changed the definition of MSME. With this new definition, the difference between manufacturing and services enterprises has been eliminated. Under the new definition of MSME, the government has also included the turn over as additional criteria to define the MSME. According to the investment ever MSME unit has been divided into three categories; micro, small, and medium. According to the government, “Low threshold in MSME definition has created a fear among MSMEs of graduating out of the benefits and hence killing the urge to grow”.
According to the new announcement now a firm with investment up to Rs 1 crore and turnover up to Rs 5 crore will fall in the category of micro enterprises. Investment up to Rs 10 crore and turnover up to Rs 50 crore will take the firm into the category of small enterprises and any firm with investment up to Rs 20 crore and turnover up to Rs 100 crore will be considered as medium enterprises.
Benefits to Support MSMEs
MSME is the sector that offers jobs to many people in India. When the central government wants to support this sector the government actually supports a sector that gives more strength to the economy and more jobs to unemployed. All the announcements made by the Finance Ministers made the MSME sector happy.
What Will Happen After 17 May?
It is expected that the government will not lift the lockdown completely but will give some relaxation. Red zone and contentment zones may be fully locked down but green and orange zone will get more relaxation. Even if the government will give some relaxation in lockdown to start the businesses and other work to give some boost to the economy it becomes the responsibility of each one of us to take all the precautions to stay away from Coronavirus.