Bikky Khosla | 17 Nov, 2020
government last week announced fresh stimulus measures under the Atmanirbhar
3.0 stimulus package. There are total 12 fresh measures amounting to Rs 2.65
lakh crore. This support to the COVID-hit economy is welcome. Experts believe
that the move would have a multiplier effect on the economic
growth trajectory. Demand, job creation, private investment, exports – all
should get a big boost as a result of these measures, which, in turn, are
expected to economic rebound over the coming quarters
the new stimulus measures, 'Atmanirbhar Bharat Rozgar Yojana' has been
announced to incentivise creation of new employment opportunities. Under the
scheme, the central government will subsidise the Employees' Provident Fund
(EPF) contributions for two years. Also, an additional outlay of Rs 10,000
crore for the Pradhan Mantri Garib Kalyan Rozgar Yojana has been announced.
This measures are expected to provide a further boost to rural employment.
ECLGS scheme for MSMEs, MUDRA loan borrowers and individuals has been extended
till March next year. This move is expected to give a much-needed relief to our
entrepreneurs who have been bearing the brunt of the ongoing pandemic. Additionally,
it was also announced that the Centre will also allocate Rs 18,000 crore more
to the Pradhan Mantri Awas Yojana (PMAY) – Urban. The package also includes
measures –including an increase in the permitted differential between the
circle rate and the agreement value of housing units to boost demand and
provide liquidity for the sector.
Meanwhile, the RBI estimates that
India's GDP growth for the second quarter of the current financial year was
negative and the GDP contracted by 8.6 percent during the quarter. In other
words, we are going to enter into a technical recession for
the first time in history with two successive quarters of negative growth. Though
this is not a big concern, but calls for for comprehensive reforms instead of
relying just on stimulus measures, to push the economy back on track.
I invite your opinions.