Nirmala Sitharaman Announces Atmanirbhar Bharat 3.0 Measures, Says Strong Recovery Clearly Happening

Finance Minister Nirmala Sitharaman on Thursday announced stimulus measures to aid job creation, and boost the key real estate and infrastructure sectors, under the government's Atmanirbhar Bharat 3.0 package, aimed at rescuing the economy out of a historic contraction. "A number of indicators are showing that recovery is clearly happening in the economy... The strong recovery is based on the unrelenting reforms that the government has brought in a systematic manner," the Finance Minister said in a media briefing. Asserting that the latest set of measures take the overall monetary and fiscal support for the economy to ₹ 29.88 lakh crore, the finance minister said it is equivalent to 15 per cent of the country's GDP.

The announcements come at a time when economists have called for the need for further impetus to aid a revival in an economy battered by the world's biggest lockdown to curb the spread of COVID-19.

Here are key highlights of Finance Minister Nirmala Sitharaman's media briefing:

Going to announce few new measures

First, would like to give you a picture of economic situation, and impact on Atmanirbhar Bharat announcements made recently

Active cases of COVID-19 have declined

In last 10-15 days, there have been many measures and indicators showing recovery clearly happening

The strong recovery is based on unrelenting reforms brought by government in a systematic manner

GST collections were at ₹ 1.05 lakh crore in October, up 10% year-on-year

FDI inflows stood at $35.37 billion in April-August, up 13%

Bank credit growth has improved compared to last year, up.5.1% year-on-year (as of October 23)

Markets are at record highs, with market capitalisations at record levels

RBI's forex reserves have reached $560 billion

RBI predicts strong likelihood of economy returning to growth in Q3

Moody's has today revised India GDP projection to -8.9% (2020-21) from -9.6%

PROGRESS ON ATMANIRBHAR BHARAT 1.0 MEASURES:

Under the "One Nation, One Ration Card" scheme, interstate portability achieved in 28 states/Union Territories, covering 68.6 crore beneficiaries

Intrastate portability also achieved, with 1.5 crore transactions a month

Under PM Steet Vendor's Atmanirbhar Nidhi (PM Svanidhi) scheme, 26.32 lakh loan applications received, 13.78 lakh loans (amounting to ₹ 1,373.33 crore) sanctioned in 30 states and six UTs

Kisan Credit Card: Credit boost achieved for 2.5 crore farmers

1.83 lakh applications received

Under ECLG 1.0, ₹ 2.05 lakh crore sanctioned to 61 lakh borrowers, ₹ 1.52 lakh crore disbursed

Under partial credit guarantee scheme, PSU banks approved purchase of portfolios worth ₹ 26,889 crore

Under special liquidity scheme for non-banking financial companies/housing finance companies, ₹ 7,227 crore disbursed

Rs 1,18,273 crore loans sanctioned to 17 states/UTs towards liquidity injection for power distribution companies, ₹31,136 crore already disbursed to 11 states/UTs

PROGRESS ON ATMANIRBHAR BHARAT 2.0 MEASURES (ANNOUNCED ON OCT 12):

Festival advance launched for government staff, SBI Utsav Cards being disbursed

Leave Travel Concession (LTC) schemes launched

Rs 25,000 crore provided as additional capital expenditure (capex) to road and defence ministries

Rs 3,621 crore sanctioned to 11 states as interest-free loans towards capex

PM Rozgar Protsahan Yojana (PMRPY) implemented up to March 31, to incentivize formalisation, creation of jobs

Total benefit of ₹ 8,300 crore given to 1,52,899 companies covering 1,21,69,960 beneficiaries

TODAY'S ANNOUNCEMENTS (ATMANIRBHAR BHARAT 3.0):

12 areas to be covered

Announces Atmanirbhar Bharat Rozgar Yojana, aimed at incentivising creation of employment opportunities during COVID-19 recovery phase

Beneficiaries under this new scheme will include: new employees joining employment in EPFO-registered establishments on monthly wages less than ₹ 15,000, and EPF members drawing monthly wage of less than ₹ 15,000 who exited employment during March-September, and employed on or after October 1

Central government to give subsidy on new employment

Employee and employer contribution of 12% each to be borne by government, for next two years; aimed at easing financial burden on companies for creating jobs

95% of all (organised sector) establishments estimated to be covered under this scheme will have employees up to 1,000

Emergency Credit Line Guarantee Scheme (ECLGS) extended till March 31, 2021 (collateral-free, fully guaranteed loan)

MSMEs, business enterprises, individual loans for business purposes, MUDRA borrowers eligible for this scheme

Rs 2.05 lakh crore already sanctioned to 61 lakh borrowers under this scheme, ₹ 1.52 lakh crore disbursed, as of November 12

ECLGS 2.0 - for supporting stressed sectors - to be utilized for 100% guaranteed collateral free additional credit at capped interest rate

Production-Linked Incentives (announced on Wednesday) for manufacturers expected to give boost to economy and domestic employment

Rs 18,000 crore additional outlay (over and above Budget allocation of ₹ 8,000 crore) for urban leg of PM Awaas Yojana (PMAY)

A number of measures have already been taken over past few months for revival of housing and real estate; However, more measures needed to aid employment creation

The step will help in completing 18 lakh houses

78 lakh additional jobs expected

Income tax relief for developers and home-buyers, to boost demand for residential real estate

Differential hiked to 20% from 10% till June 30 for only primary sale of residential units worth up to ₹ 2 crore

Rs 1.1 lakh crore platform for Infra Debt Finance; ₹ 6,000 crore equity infusion in NIIF Debt Platform

Rs 6,000 equity infusion by government, rest to be raised from private sector

Rs 65,000 crore support for agriculture in form of subsidised fertilisers

Increased supply of fertilisers at subsidised prices to help 140 million farmers

Amount to ensure adequate availability of fertilisers to farmers for upcoming crop season

For exports: Assistance of ₹ 3,000 crore to be given to EXIM Bank for lines of credit

Supported projects cover areas such as Railways, power, transmission, road, transport, auto, auto components, sugar

Rs 10,200 crore additional budget outlay towards capital and industrial expenditure

Areas to be covered:

Domestic defence equipment

Industrial incentives

Industrial infra

Green energy

Rs 900 crore R&D grant for development of a COVID-19 vaccine (COVID Suraksha Mission for Research and Development of Indian COVID Vaccine To Department Of Biotechnology)