Total package equivalent to 10% of India’s GDP
PM gives a call for self-reliant India; lays down five pillars of Atmanirbhar Bharat
Bold reforms across sectors will drive the country’s push towards self-reliance: PM
It is time to become vocal for our local products and make them global: PM
12 MAY 2020 8:45PM by PIB Delhi
Prime Minister Narendra Modi addressed the nation today. Recalling those who have died battling the pandemic, Prime Minister said that the crisis that has emerged due to COVID-19 is unprecedented, but in this battle, we not only need to protect ourselves but also have to keep moving forward.
Self-reliant India
Talking about the pre and post COVID worlds, Prime Minister observed that in order to fulfill the dream of making the 21st century India’s, the way forward is through ensuring that the country becomes self-reliant. Talking about turning a crisis into an opportunity, he gave the example of PPE kits N-95 masks, whose production in India has gone up from almost being negligible to 2 lakh each, on a daily basis.
Prime Minister remarked that the definition of self-reliance has undergone a change in the globalized world and clarified that when the country talks about self-reliance, it is different from being self-centered. He said that India’s culture considers the world as one family, and progress in India is part of, and also contributes to, progress in the whole world. He noted that the world trusts that India has a lot to contribute towards the development of the entire humanity.
Five pillars of a self-reliant India
Recalling the devastation in Kutch after the earthquake, Prime Minister said that through determination and resolve, the area was back on its feet. A similar determination is needed to make the country self-reliant.
He said that a self-reliant India will stand on five pillars viz. Economy, which brings in quantum jump and not incremental change; Infrastructure, which should become the identity of India; System, based on 21st century technology driven arrangements; Vibrant Demography, which is our source of energy for a self-reliant India; and Demand, whereby the strength of our demand and supply chain should be utilized to full capacity. He underlined the importance of strengthening all stakeholders in the supply chain to increase, as well as fulfill, the demand.
Atmanirbhar Bharat Abhiyaan
Prime Minister announced a special economic package and gave a clarion call for Atmanirbhar Bharat. He noted that this package, taken together with earlier announcements by the government during COVID crisis and decisions taken by RBI, is to the tune of Rs 20 lakh crore, which is equivalent to almost 10% of India’s GDP. He said that the package will provide a much needed boost towards achieving ‘Atmanirbhar Bharat’.
Prime Minister observed that the package will also focus on land, labour, liquidity and laws. It will cater to various sections including cottage industry, MSMEs, labourers, middle class, industries, among others. He informed that the details of the contours of the package will be provided by the Finance Minister from tomorrow, in the coming few days.
Talking about the positive impact of reforms like JAM trinity and others, brought about in the last six years, Prime Minister said that several bold reforms are needed to make the country self-reliant, so that the impact of crisis such as COVID, can be negated in future. These reforms include supply chain reforms for agriculture, rational tax system, simple and clear laws, capable human resource and a strong financial system. These reforms will promote business, attract investment, and further strengthen Make in India.
Prime Minister remarked that self-reliance will prepare the country for tough competition in the global supply chain, and it is important that the country wins this competition. The same has been kept in mind while preparing the package. It will not only increase efficiency in various sectors but also ensure quality.
Highlighting their contribution to the country, Prime Minister said that the package will also focus on empowering the poor, labourers, migrants, etc., both from organized and unorganized sectors.
He observed that the crisis has taught us the importance of local manufacturing, local market and local supply chains. All our demands during the crisis were met ‘locally’. Now, its time to be vocal about the local products and help these local products become global, he said.
Living with COVID
Prime Minister noted that several experts and scientists have said that the virus is going to be part of our lives for a long time. But, it is also important to ensure that our life does-not revolve only around it. He exhorted people to work towards their targets while taking precautions like wearing masks and maintaining ‘do gaz doori’.
On the fourth stage of Lockdown, he said that its contours will be completely different from those seen yet. On the basis of recommendations received from states, new rules will be framed, and information about the same will be conveyed before 18th May.
Quotes:
“The economic package aims to make India self-reliant and support various segments of the society. The government aims to focus on aspects termed as four ‘L’ -labour, law, land and liquidity that may accelerate reforms and provide relief to the real estate sector. The trickledown effect of the package may improve sentiments, provide support and boost morale of SMEs, industries, and others”.
By: Megha Maan, Senior Associate Director, Research at Colliers International India
“The PM’s announcement laid out the Government’s vision and intention of creating a self-reliant economy. It is likely that the package will involve a strategic impetus to domestic manufacturing, enhancing exports and transformative reforms to attract investment. The Government is conscious that liquidity alone will not mitigate the risk aversion in the economy, but a fiscal package of this scale will go a long way to reassure domestic and global investors of the country’s resilience and commitment to growth”.
Aashish Agarwal, Senior Director (Head- Consulting) at Colliers International India
Nitin Gadkari welcomes PM’s economic package for MSME, village and cottage industry sector; says, it will take this sector to new heights
12 MAY 2020 9:50PM by PIB Delhi
Union Minister for MSMEs and Road Transport & Highways Nitin Gadkari has welcomed the Prime Minister’s relief package worth Rs 20 lakh crore announced this evening. He said, through this historical package, the Prime Minister has fulfilled the expectations and aspirations of the MSME, village and cottage industry sector..
Gadkari said, with abundant resources, superior technology and raw materials, India can soon become self-reliant in all sectors. He said, the Prime Minister has also envisioned India as a super economic power in global economy. The Minister said, taking the economic slowdown due to COVID-19 pandemic as a blessing in disguise, we should strive to maintain positivity and self confidence to take the country ahead.
The Minister said, the nation will remember this gesture of the Prime Minister for a very long time. He said, PM’s support to this sector which gives employment to over 11 crore people and contributes by nearly 29 per cent of GDP, can never be forgotten by all the stake holders of this sector. He expressed confidence that the MSME, village and cottage industry sector will grow to new heights with the support of this package.
