With more than a year of being with the global pandemic followed by lockdowns and restrictions, the economy of India has come to a standstill. Many fear that things might crash but the Finance Minister Nirmala Sitharaman recently announced eight revival measures for the Indian economy.
Here are the 8 key economic relief measures announced by FM Nirmala Sitharaman on June 28, 2021:
Rs 1.1 Lakh Crore Loan Guarantee Scheme for Covid-19 Hit Sectors
Under this scheme, Rs 50,000 crores have been assigned to the healthcare sector. And Rs 60,000 crores for other sectors.
With this, the aim is to improvise the medical infrastructure. While announcing the scheme, Sitharaman said that this loan guarantee would cover the new projects related to the health and medical infrastructures in other cities apart from the 8 metropolitan cities. It will include both the public and private sectors who are free to avail the loan of Rs 200 crores (maximum) with a guaranteed duration of up to three years.
The fund allocation is further divided into 60% for expansion and 75% dedicated to new projects.
Rs 1.5 Lakh Crore for Emergency Credit (Additional)
Sitharaman announced an additional amount of Rs 1.5 crores for the Emergency Credit Line Guarantee Scheme (ECLGS). The ECLGS was announced in May last year as part of the Aatmanirbhar Bharat Package.
Rs 23,220 Crores For Public Healthcare Sector
In a separate announcement from the Credit Guarantee Scheme under the healthcare centre, Rs 23,220 crores have been allotted towards increasing medical facilities availability. It includes ICU beds, medical oxygen, medical equipment, etc.
This scheme also includes enhancing the testing capacity and supportive diagnostics.
Rs 33,000 Crores For Buyer’s Credit and Rs 88,000 Crores for Export Insurance Account
The Ministry of Finance announced additional funding of Rs 33,000 crores to the National Export Insurance Account (NEIA), to be provided over five years. NEIA Trust provides buyers with credit to the people who have fewer chances of getting credit and supporting other project exporters.
They also announced an additional amount of Rs 88,000 crores to boost the export insurance cover.
Financial Support For Tourist Guides, Tourism Stakeholders
As a measure to uplift the economy in Covid hit areas, tourism has also suffered greatly. Following this, FM Sitharaman announced that working capital or personal loan would be provided to the people working in the tourism sector to assist their revival.
The scheme will cover 10,700 regional level tourist guides recognized under the Ministry of Tourism. An amount up to Rs 10 lakh is available for Travel and Tourism Stakeholders. The licensed tourist guides at a regional or state level will be granted a loan up to Rs 1 lakh.
5 Lakh Tourists To Get Free Visa
To enhance the tourism industry, the Finance Minister said that the first 5 lakh tourists visas will be issued for free. The scheme will be applicable till March 31, 2022, or till 5 lakh visas, whichever comes first.
Aatmanirbhar Bharat Rozgar Yojana Gets Extension
Since many were left jobless during the pandemic and the lockdown, the Centre has decided to extend the wage subsidy scheme for another nine months via the Employees Provident Fund Organization. The aim is to boost job creation in formal jobs.
Better Process for PPP Projects and Asset Monetisation
Under the new economic relief measures, Finance Minister Nirmala Sitharaman has formulated a new policy for the appraisal and approval of PPP proposals. Along with the monetisation of core infrastructure assets.
With this policy, the new process would assure speedy clearance of projects which is further expected to facilitate the private sectors with better financing and infrastructure management.
Meanwhile, the Union Cabinet recently approved an additional relief package of Rs 6.29 lakh crores to help with the revival of the economy. Union Minister Ravi Shankar Prasad spoke to the media after the Cabinet meeting. He said that they have approved a public-private partnership for the BharatNet project in villages. The aim is to provide broadband services in the villages across 16 states with a funding of Rs 19,041 crores.