India new stimulus measures to boost COVID-hit economy |
Indian Finance Minister Nirmala Sitharaman on 12th November announced more stimulus measures to boost the economic growth of the country. Announcing the measures, the FM expressed confidence and said that the Indian economy is on its way to emerge stronger after a long and strict COVID-19-induced lockdown. A new job creation scheme, an extension to ECLGS scheme, monetary grant to COVID-19 vaccine research, additional funding for urban housing, and increased subsidies for fertilizers were some of the announcements made by Sitharaman. As per a new job creation scheme, establishments that make new hires will get subsidies. Employees and employers` contribution of 12 percent of wages each, totaling 24 percent of wages would be given to establishments for two years. Under the Atma Nirbhar Bharat Rozgar Yojana, employees in the Employees` Provident Fund Organization (EPFO)-registered establishments will get this subsidy. The Finance Minister also announced an extension of the Emergency Credit Line Guarantee Scheme till March 31, 2021. Under the scheme, fully guaranteed and collateral-free loans are provided to small and micro-enterprises. Sitharaman also announced a guaranteed credit scheme for supporting stressed sectors. The scheme would cover entities in 26 stressed sectors identified by the Kamath Committee and also the healthcare sector with credit outstanding of above $ 6.7 mn and up to $ 6.7 mn as of February 29, 2020. Sitharaman announced an $ 8.7 bn fertilizer subsidy for farmers as part of her stimulus package to boost the economy. She said the subsidy will ensure adequate and timely accessibility of fertilizers to farmers in the upcoming crop season.
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