After Modi’s economic package, Nitin Gadkari asks states to chip in Rs 20 lakh cr more to fight coronavirus

Nitin Gadkari today said that states must contribute Rs 20 lakh crore to fight against coronavirus-led disruptions.

Union Minister Nitin Gadkari today said that states must contribute Rs 20 lakh crore, weeks after Prime Minister Narendra Modi announced a mega economic reforms package of Rs 21 lakh crore to fight the disruptions led by the coronavirus pandemic.  Nitin Gadkari said that there is more liquidity needed to boost the economy and therefore another Rs 10 lakh crore can be generated through public-private investment for the same cause. The minister added that India will win the economic and corona war even as all sections of the society including migrants, media, business persons, and employees are facing problems at the moment. 

Recently, Prime Minister Narendra Modi announced a special economic package and raised a slogan to make India self-reliant. While detailing out the economic package, Finance Minister Nirmala Sitharaman raised the net borrowing limit for state governments from 3 per cent of the gross state domestic product (GSDP) to 5 per cent to make available an additional Rs 4.28 lakh crore to all the states combined. The Finance Minister also highlighted that the states have utilised only 14 per cent of Rs 4.8 lakh crore so far this fiscal. 

Meanwhile, the states are working hard to amp up their earnings by attracting foreign investment and amending labour laws. After PM Modi urged the states to increase efforts to attract the companies looking forward to changing the base from China, many states have come forward with plans for the same. The Uttar Pradesh government has already spoken to nearly 100 giant US companies about the facilities they can offer them in the state. Similarly, the states have announced agriculture reforms and labour reforms to increase agricultural and industrial activities.