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The package caters to cottage industry, MSMEs, labourers, middle class and industry, among others.

Covid-19: Will stimulus package work – Hits and misses

In the Covid-19 stimulus package, five pillars of Atmanirbhar Bharat were stressed upon: economy, infrastructure, tech-driven system, vibrant demography and demand.

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By Sandeep Goel

In the Covid-19 stimulus package, five pillars of Atmanirbhar Bharat were stressed upon: economy, infrastructure, tech-driven system, vibrant demography and demand. The package caters to cottage industry, MSMEs, labourers, middle class and industry, among others. Following are the key pointers of five tranches:

Tranche 1 (May 13): Business including MSMEs: The finance minister declared Rs 3 lakh crore collateral-free automatic loans for businesses, including MSMEs, and Rs 30,000 crore liquidity facility for NBFCs, including other measures.

Tranche 2 (May 14): Farmers: Direct support provided to farmers and the rural economy is a booster for the agricultural sector.

Tranche 3 (May 15): Agriculture: The Rs 30,000 crore additional emergency working capital for farmers provided through NABARD and Rs 2 lakh crore credit boost further included to 2.5 crore farmers under the Kisan Credit Card scheme.

Tranche 4 (May 16): New growth avenues: Policy reforms to fast-track investment for attaining self-reliance, such as fast-track investment clearance through empowered group of secretaries, setting up of project development cell in each ministry for preparing investible projects, ranking of states on investment attractiveness, schemes for promotion of new champion sectors like solar PV manufacturing, advanced battery cell storage, etc.

Tranche 5 (May 17): Government reforms and boosters: Health-related steps amounting to Rs 15,000 crore have been taken so far for Covid-19 containment.

Such intense changes will drive the country’s push towards self-reliance. However, there are areas that have not been covered in depth in these tranches; for example, migrant workers, salaried class employed in private firms and business houses have been the sufferers.

The author is associate professor, Accounting & Finance Area, MDI Gurgaon