Addressing the press conference on 12 November, Finance Minister of India Nirmala Sitharaman announced 12 new fresh stimulus measures that can be called the subsequent step in the series of stimulus announcements -Atmanirbhar Bharat 3.0. The intent of this announcement is to give a much-needed boost to COVID-19 hit economy and stimulate employment in the formal as well as the informal economy, enriching ease of doing business, prolonging the deadline for the CLGS Scheme (Credit Line Guarantee Scheme), upgrade housing infrastructure, etc.
Under Atmanirbhar Bharat 3.0, Indian folks have received Diwali gifts from the Narendra Modi-led central government via a long-awaited stimulus package intended for reviving the Indian economy. Nirmala Sitharaman, Union Finance Minister of India, has announced the Atmanirbhar Bharat 3.0 stimulus measures to take the Indian economy to new heights. The objective behind the recent announcements under Atmanirbhar Bharat 3.0 is to lend benefit to individuals and companies who lost their jobs because of the Coronavirus induced lockdown. Finance Minister also asserted that some of the indicators were exhibiting a remarkable recovery in the Indian economy.
On Wednesday, the cabinet certified a proposal to furnish production-linked incentives of around Rs2 lakh crore over five years to generate a wide range of job opportunities and promote manufacturing in India.
In the sectors mentioned below, the government is planning to initiate Production Linked Incentive Scheme-
| Champion Sectors | Estimated Expenditure on Production Linked Incentives in Rs. Crore |
| Pharmaceutical Drugs | 15,000 |
| Food Products | 10,900 |
| Advance Cell Chemistry Battery | 18,100 |
| Automobiles and Auto Components | 57,042 |
| Textile Products | 10,683 |
| Specialty Steel | 6,322 |
| High Efficiency Solar PV Modules | 4,500 |
| Telecom and Networking Products | 12,195 |
| Electronic/Technology Products | 5,000 |
| White Goods(LED&Acs) | 6,238 |
| Total | 1,45,980 |
Throwing Light on the Strong Recovery of Economy
- There is a decline in active cases of COVID-19 from over 10 lakh to 4.89 lakh cases that are active with Case Fatality Rate at 1.47%.
- In October, energy consumption growth showing an upward trend at 12% YoY
- On 23rd October 2020, there is an improvement in bank credit YoY growth by 5.1%.
- For the month of October, GST collections grossed out Rs 1.05 lakh crore – 10% YoY.
- The Composite Purchase Managers Index, i.e., PMI, has registered a robust increase in output in around nine years. Before October, it was recorded as 54.6, and eventually, it rose to 58.9 in October.
- Daily railway freight tonnage thrived by an average of 20% YoY. Last week, it was just 12%.
- Record Market Capitalization, Markets at a record high, Net Investments concerning FPIs- +ve, Forex Reserves- USD 560 billion
- As per the predictions made by the Reserve Bank of India, the Indian economy is likely to return to a stage of positive growth forward by a quarter of the initial forecast.
- Foreign Direct Investment (FDI) inflows in the time frame between April and August at USD 35.37 billion have witnessed a 13 % rise on a year-on-year basis.
Atmanirbhar Bharat 1.0- Let’s Take a Look at the Progress
One Nation-One Ration Card Facility
It is an enterprising plan as well as an endeavor of the Food & Public Distribution Department to confirm the delivery of food security entitlements to every beneficiary encircled under the NFSA (National Food Security Act), 2013, irrespective of their physical presence anywhere in India, by enforcing country-wide portability of ration cards within the persistent central sector scheme on IM- PDS (Expanded as Integrated Management of Public Distribution System) in union with all States/UTs.
Inter-State Portability: 28 States/Union Territories have been drawn under the national portability of ration cards effective from 1st September 2020.
Now it encompasses 68.6 crore beneficiaries who have got an option to raise their food grains from FPS of their preference in any of these 28 States/Union Territories.
Intra-State Portability: It is facilitated in these 28 States/Union Territories, around 1.5 Crore monthly transactions.
PM SVANidhi Scheme
- Around 26.62 lakh loan applications were received.
- 13.78 lakh loans amounting to Rs 1377.33 Cr were authorized.
Note- Operations on the portal for migrant workers get initiated.
Credit Boost through Kisan Credit Cards
The credit boost will be furnished to 2.5 crore farmers in different parts of India through Kisan credit cards. Till now, 183.14 lakh applications have been collected. Banks have granted KCC for 157.44 lakh eligible farmers all over India and authorized a limit of Rs 1, 43,262 crore in two different phases.
Pradhan Mantri Matsya Sampada Yojana (PMMSY)
The Pradhan Mantri Matsya Sampada Yojana(PMMSY in short) is formulated to deal with significant gaps in fish production & productivity, post-harvest infrastructure, and management, quality, technology, modernization & strengthening of the value chain, solidifying a robust fisheries management framework, traceability, and fishers” welfare.
At an entire cost of Rs. 1681. 32 crores, proposals from 21 States have been sanctioned.
Rs 25,000 crores have been disbursed to Indian farmers from Additional Emergency Working Capital Funding via NABARD.
Partial Credit Guarantee Scheme 2.0
PSBs (Expanded as Public Sector Banks) have authorized the purchase of a portfolio of Rs. 26, 889 crores.
Liquidity Injection for DISCOMs
Loans of Rs. 118,273 Crore have been authorized to 17 States/Union Territories & Rs. 31,136 Crore has already been released or disbursed before to 11 States/Union Territories.
Special Liquidity Scheme for HFC/NBFC
The disbursed amount is Rs. 7227 Crore.
ECLGS 1.0
1.52 lakh crore disbursed
2.05 lakh crore got sanctioned to 61 lakh borrowers
Atmanirbhar Bharat 2.0- Progress Report
- On 12th October, these announcements were made.
- LTC voucher schemes were introduced.
- Festival advance initiated- SBI Utsav Cards being circulated.
- 11 states have been availed Rs 3,621 crore as an interest-free loan towards capital expenditure.
- Rs. 25,000 Crores furnished as additional Capex to Ministry of Defence and Ministry of Road Transport.
Aatm Nirbhar Bharat Rozgar Yojana
Having the mission in the kitty to boost employment and enhance livelihoods during the covid-19 recovery trip, the Indian government launched a modern job creation scheme under Atmanirbhar Bharat 3.0, Atmanirbhar Bharat Rozgar Yojana to incentivize job creation and give birth to millions of job opportunities in India. The scheme of Atmanirbhar Bharat Rozgar Yojana will be applicable to EPFO enrolled organizations if they take in brand-new employees or those who got sacked from their respective jobs in the past. It is effective from October 1, 2020.
Under the Atmanirbhar Bharat 3.0, the Finance Minister notified about Atmanirbhar Bharat Rozgar Yojana. The Central government will furnish subsidy for about two years with regard to recently eligible employees engaged on or after October 1, 2020, under the Atmanirbhar Bharat Rozgar Yojana.
Also, she mentioned that under the Atmanirbhar Bharat 3.0, Atmanirbhar Bharat Rozgar Yojana is being inaugurated to incentivize the composition of new employment opportunities for various people during COVID-19 healing. All the EPFO registered organizations – if they bring new employees on board or those who had lost their respective jobs between the time frame of March 1 & September 30 – these employees will receive benefits.
More about the Scheme under Atmanirbhar Bharat 3.0
- The Centre will furnish employee’s contributions (12 % of the overall wages) and contributions of the employers’ (12 percent of wages), amounting to 24 % of the wages for the establishments providing employment opportunities to around 1,000 employees.
- The government will furnish EPF contribution worth 12 % of the EPF wages for those paying more than 1,000 employees. The Union Finance Minister Nirmala Sitharaman asserted that the subsidy support would get credited upfront in Aadhaar seeded EPF account of those new employees who are eligible.
- Establishments getting themselves registered with EPFO after the outset of Atmanirbhar Bharat Rozgar Yojana under Atmanirbhar Bharat 3.0 will also receive the subsidy for all newly joined employees. The Yojana is likely to be in action till June 30.
Beneficiaries under the Atmanirbhar Bharat Rozgar Yojana
- All the new employees joining employment in EPFO registered corporations on monthly wages below Rs.15000/-.
- Members of EPF drawing monthly wage of not more than Rs.15000/- who left their job during COVID-19 Pandemic from 01.03.2020 to 30.09.2020 and has joined any company or firm on or after 01.10.2020.
Atmanirbhar Bharat 3.0- Eligibility Criteria for Establishments under Atmanirbhar Bharat Rozgar Yojana
- Establishments enrolled with EPFO if they bring new employees compared to the reference root of employees as in September 2020 as under:
- Minimum of five new employees in case if the reference base is beyond 50 employees
- Minimum of two new employees in case if the reference base is either 50 employees or less than 50
- Establishments listing with EPFO after the initiation of Scheme to gain subsidy for all new employees
- Scheme to be functional before the end of 30th June 2021
PM Garib Kalyan Rozgar Yojana under Atmanirbhar Bharat 3.0
In a press conference on the 12th of November 2020, FM Nirmala Sitharaman has asserted that an additional outlay of Rs 10,000 has been confirmed for the Prime Minister’s Garib Kalyan Rozgar Yojana to boost rural employment. In addition to this, she declared that Rs 73,504 crore has already been used up from the modern outlay of Rs 1 lakh crore on the PM Garib Kalyan Rozgar Yojana. Launched in June 2020 by PM Narendra Modi, the Prime Minister’s Garib Kalyan Rozgar Yojana was formulated to empower and render livelihood opportunities in rural regions, noticing a major chunk of returnee migrant workers affected by the Coronavirus pandemic. It will accelerate the growth of the Indian rural economy.
Under Atmanirbhar Bharat 3.0, Finance Minister Nirmala Sitharaman also made a significant announcement concerning the Rs 65,000-crore fertilizer subsidy for farmers in rural parts of India as a portion of her stimulus package to give pace to the Indian economy.
Also, she asserted Rs 65,000 crore is being furnished to assure the availability of fertilizers to farmers in sufficient amount and to facilitate instantaneous accessibility of fertilizers in the forthcoming crop season under Atmanirbhar Bharat 3.0. Increased allowance of fertilizers at subsidized rates will be helpful for more than 140 million farmers.
COVID Suraksha Mission & More Information about the Package
- Under Atmanirbhar Bharat 3.0, the finance minister Nirmala Sitharaman declared an Rs 900 crore grant in favor of the COVID Suraksha Mission, which gazes at the R&D of the COVID-19 vaccine under the umbrella of Department of Biotechnology.
- A financial boost of Rs 3,000 crore will be given for project exports via assistance provided by India to evolving nations under IDEAS Scheme.
- Rs 10,200 crore additional budget stimulus to be furnished for industrial infrastructure, capital & industrial expenditure on defense equipment as well as green energy
- Under Atmanirbhar Bharat 3.0, Union Finance Minister Nirmala Sitharaman Ji further added that India is beholding a “solid recovery” taking root in the economy, as glimpsed by improved goods and service tax compilations along with other metrics.
Atmanirbhar Bharat 3.0: Significant Highlights
- Under Atmanirbhar Bharat 3.0, assistance for Construction and Infrastructure-Performance security on a contract basis would get curtailed to 3% in place of 5%. Intense Money Deposit won’t be needed for tenders and would hopefully get replaced by Bid Security Declaration. Till December 31, 2021, Relaxations will be provided in this case.
- Rs 3,000 crores would get discharged to EXIM Bank for the advancement of project exports under the IDEAS Scheme via the lines of credit. Aided projects encompass transmission, road and transport, Railways, power, auto and auto components, sugar projects, and more.
- Under Atmanirbhar Bharat 3.0, Nirmala Sitharaman Ji also announced income tax relief for real estate developers as well as homebuyers. The differential b/w circle rate and agreement value for primary residential based real estate sales of up to Rs 2 crore elevated to 20% from the previous percentage figure of 10%. The applicability of this offer is valid till June 30, 2021. This move will transport both homebuyers and developers into a win-win situation. It will assist in lessening the high inventory, lower the acquisition cost for homebuyers.
Atmanirbhar Bharat 3.0: Other Highlights
- Under Atmanirbhar Bharat 3.0, India’s union finance minister also endorsed a ₹18,000-crore additional outlay for the urban housing scheme to support comprehensive real estate projects. Nirmala Sitharaman Ji further affirmed that Rs 18,000 crore would be delivered over and above the 2020-21 Budget Estimates with respect to the Prime Minister Awas Yojana (Urban) via extra allocation and additional budgetary reserves. This move will encourage start work on 12 lakh houses along with complete 18 lakh houses.
- Under Atmanirbhar Bharat 3.0, The government of India will make Rs 6,000 crore equity investment in the debt arena of the National Investment and Infrastructure Fund (NIIF in short), which will eventually assist NIIF to raise Rs 1.1 lakh crore by 2025 in order to finance infrastructure projects.
| Spheres | Fiscal Cost (RS. Crore) |
| Support for Agriculture- Fertilizer Subsidy | 65,000 |
| Boost for Atmanirbhar Manufacturing Production-Linked Incentive( 5 Yrs) | 1,45,980 |
| Boost for Rural Employment | 10,000 |
| Boost for Project Exports- Support for EXIM Bank | 3,000 |
| Boost for Infrastructure- NIIF Debt PF | 6,000 |
| Housing for All- PMAY- U(Via Additional Budgetary Resources) | 18,000 |
| Atmanirbhar Bharat Rozgar Yojana(2 Yrs) | 6,000 |
| R&D Grant for COVID Suraksha(Development of Vaccine) | 900 |
| Industrial Incentives, Industrial Infrastructure & Domestic Defence Equipment | 10,200 |
| Total | 2,65,080 |
Extension of Emergency Credit Line Guarantee Scheme till March 31, 2021
In the past, only MSMEs were eligible for this benefit, presently individual loans for business purposes, business enterprises, & MUDRA borrowers will also be getting the benefit of this Emergency Credit Line Guarantee Scheme.
Under the scheme of Emergency Credit Liquidity Guarantee, an entire amount of Rs 2.05 lakh crore has been authorized to 61 lakh borrowers, out of which the amount of Rs 1.52 lakh crore has been forked out.
To Wrap Up
In continuation of its stimulus packages announced in the preceding period, Finance Minister Nirmala Sitharaman announced Atmanirbhar Bharat 3.0, containing 12 measures to assist in the revival of the Indian economy. ASSOCHAM president Niranjan Hiranandani stated that Atmanirbhar Bharat 3.0 would further promote and incentivize job creation and render much assistance & relief and impetus to the housing as well as the infrastructure sector.
To be precise, we can say that Atmanirbhar Bharat 3.0 will pave the way to recovery of the economy after the COVID-19 outbreak. The stimulus package is a Diwali gift of hope and bliss from the government. At Aatmnirbhar Sena, we will be looking forward to attaining maximum benefits from the stimulus measures and utilize them for the benefits of Indian folks.
