Coronavirus: PM Modi's Rs 20 lakh crore package to boost Make in India a silver lining for MSMEs
As India grapples with the consequences of the coronavirus lockdown, Prime Minister Narendra Modi announces a Rs 20 lakh crore package to revive the economy, exhorts people to be 'vocal for local'.
Prime Minister Narendra Modi
Prime Minister Narendra Modi, while addressing the nation today, announced a relief package of Rs 20 lakh crore under ‘Atmanirbhar Bharat Abhiyan’ to boost Make in India and strengthen the Indian supply chain globally.
“The relief package is built on five pillars - economy, demography, system, infrastructure, and demand to support the Indian supply chain - considering the land, labour, law, and liquidity that will support small businesses, MSMEs, and farming sector,” he said.
The details of the ‘Atmanirbhar Bharat Abhiyan’ will be outlined by Finance Minister Nirmala Sitharaman starting tomorrow.
The prime minister also said the tough COVID-19 phase of has taught the nation that we must make ‘local’ the mantra of our lives. Global brands that are there present today were once local; they became global when people started supporting them. Hence, he said, starting today, every Indian must become vocal for local.
The relief package is 10 percent of the Indian GDP, Modi said.
At a time when other countries are shifting their dependence on imports, this relief package brings fresh hope to Indian manufacturers and MSMEs who are heavily dependant on imports from other countries to manufacture their products.
During lockdown 1.0, MSMEs sought regulations from the government to reduce dependence on other countries and set up ‘Make in India’.
The MSMEs requested the government to rationalise rates on various industries producing a range of products, from snacks to agro-based products. They also said the government must provide tax holiday post-COVID-19, actively identify industries that are heavily dependent on China, and encourage the MSME sector to become independent of such global disturbances.
On lockdown 4.0, Modi said the fourth phase of India's lockdown to fight coronavirus would be completely redesigned, with new rules.
(Edited by Teja Lele Desai)