Fiscal Policy
A comprehensive economic package was declared due to COVID-19, incorporating USD 21.9 billion under ‘Pradhan Mantri Gareeb Kalyan Yojana’, targeting 800 million people littered with the lockdown.
In may 2020, a special economic package, ‘Aatma Nirbhar bharat Abhiyan‘ (that is, self-sustaining India Campaign), of USD 265 billion was declared. It includes measures for relief and credit support to businesses, particularly MSMEs; the poor, migrants, farmers, and street vendors; measures to strengthen agriculture infrastructure supply; structural reforms across critical sectors like coal, airspace and power and others.
World Bank has pledged $1 billion for accelerating India’s COVID-19 Social Protection Response Programme.
The government of India and also the World Bank signed a USD 400 million project to guard India’s poor and vulnerability from the impact of COVID-19.
Monetory Policy
Reserve bank of India (RBI) declared a moratorium of EMIs on all outstanding loans until August 31, 2020.
The reserve bank of India reduced the repo rate by forty basis points to four per cent to spice up liquidity. Consequently, the marginal standing facility (MSF) rate and the bank discount stand reduced to 4.25 per cent from 4.65 per cent; and also the reverse repo rate underneath the LAF stands reduced to 3.35 per cent from 3.75 %.
Support to specific sector including health sector
USD one.96 billion earmarked for testing facilities, personal protection, isolation beds, ICU beds, ventilators and training medical and paramedical workers.
District Mineral Fund amused for supplementing and augmenting medical testing, screening and alternative activities
‘Pradhan Mantri Garib Kalyan Package: Insurance theme for health workers Fighting COVID-19’ approved.
It will provide an insurance cover of USD 65,000 for ninety (90) days to a complete of around 2.2 million public tending suppliers, together with community health workers. It’ll additionally embody accidental loss of life on account of contracting COVID-19.
Scheme approved on Promotion of Bulk Drug Parks for finance Common Infrastructure Facilities in three Bulk Drug Parks.
Additionally supported, Production joined Incentive (PLI) scheme for promotion of domestic manufacturing of critical Key starting Materials (KSM)/Drug Intermediates and Active Pharmaceutical Ingredients (APIs).
Under the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme, eighty-four million farmers have benefitted since the lockdown started in March 2020.
Emergency assets Facility value USD thirty-nine billion extended to MSMEs. Additional, USD 2 Billion subordinate Debt for provisioned for stressed MSMEs.
USD 3.9 billion particular Liquidity scheme introduced for NBFC/HFC/MFIs. USD 5.9 billion partial credit guarantee scheme 2.0 raised for Liabilities of NBFCs/MFIs.
Production joined Incentive value USD 19.9 billion offered to ten champion sectors (Advance Chemistry Cell (ACC) Battery, Electronic/Technology merchandise, vehicles & automotive vehicle parts, medicine and drugs, medium & Networking products, Textile Products: MMF section and technical textiles, Food products, High-Efficiency solar PV Modules, White product (ACs & LED), Speciality Steel).
USD 8 Billion are provisioned for subsidizing fertilizers provided to support agriculture.
