WHAT THE MEGA PACKAGE MEANS

The Machinist welcomes the fact that the mega economic package details shared by the finance minister clearly show the focus is comprehensively on the MSMEs who have been adversely hit by the Covid-19 outbreak.

- Niranjan Mudholkar

On May 13, 2020, India’s Finance Minister Nirmala Sitharaman has announced relief measures for businesses, especially MSMEs to support Indian Economy’s fight against COVID-19. This is in line with the Prime Minister’s promise of a mega economic package worth Rs.20 lakh crore, which is equivalent of ten percent of the country’s GDP. The PM’s call for a self-reliant India has been very well articulated in the FM’s relief measures that comprehensively address the five pillars of self-reliance – Economy, Infrastructure, System, Vibrant Demography and Demand.

“Essentially, the goal is to build a self-reliant India that is why the Economic Package is called Aatma Nirbhar Bharat Abhiyaan (Self-reliant India movement),” the FM said. Sitharaman highlighted that the announecd measures focus on ‘Getting back to work’ i.e., enabling employees and employers, businesses, especially Micro Small and Medium Enterprises, to get back to production and workers back to gainful employment. Efforts to strengthen Non-Banking Finance Institutions (NBFCs), Housing Finance Companies (HFCs), Micro Finance Sector and Power Sector were also unfolded. Other than this, the tax relief to business, relief from contractual commitments to contractors in public procurement and compliance relief to real estate sector were also covered.

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