FM Nirmala Sitharaman Announces Atmanirbhar Bharat 3.0 to Revive COVID-Hit Economy

New Delhi: Union Finance Minister Nirmala Sitharaman today announced a slew of stimulus measures under Atmanirbhar Bharat 3.0 to revive the economy hit by COVID-19 pandemic.

Addressing a press conference, the Finance Minister said that the economy is emerging strong as key parameters of the economy are in the positive trajectory. She said, India strongly dealt with the Covid-19 pandemic and active cases and mortality rate are showing a declining trend, she said.

Key Highlights:

• Atmanirbhar Bharat Rozgar Yojana, aimed at incentivising creation of employment opportunities during COVID-19 recovery phase
• Beneficiaries under this new scheme will include: new employees joining employment in EPFO-registered establishments on monthly wages less than ₹ 15,000, and EPF members drawing monthly wage of less than ₹ 15,000 who exited employment during March-September, and employed on or after October 1
• Central government to give subsidy on new employment
• Employee and employer contribution of 12% each to be borne by government, for next two years; aimed at easing financial burden on companies for creating jobs
• 95% of all (organised sector) establishments estimated to be covered under this scheme will have employees up to 1,000
• Emergency Credit Line Guarantee Scheme (ECLGS) extended till March 31, 2021 (collateral-free, fully guaranteed loan)
• MSMEs, business enterprises, individual loans for business purposes, MUDRA borrowers eligible for this scheme
• Rs 2.05 lakh crore already sanctioned to 61 lakh borrowers under this scheme, ₹ 1.52 lakh crore disbursed, as of November 12
• ECLGS 2.0 – for supporting stressed sectors – to be utilized for 100% guaranteed collateral free additional credit at capped interest rate
• Production-Linked Incentives (announced on Wednesday) for manufacturers expected to give boost to economy and domestic employment
• Rs 18,000 crore additional outlay (over and above Budget allocation of ₹ 8,000 crore) for urban leg of PM Awaas Yojana (PMAY)
• A No. of measures have already been taken over past few months for revival of housing and real estate; However, more measures needed to aid employment creation
• The step will help in completing 18 lakh houses
• 78 lakh additional jobs expected
• Income tax relief for developers and home-buyers, to boost demand for residential real estate
• differential hiked to 20% from 10% till June 30 for only primary sale of residential units worth up to ₹ 2 crore
• Rs 1.1 lakh crore platform for Infra Debt Finance; ₹ 6,000 crore equity infusion in NIIF Debt Platform
• Rs 6,000 equity infusion by government, rest to be raised from private sector
• Rs 65,000 crore support for agriculture in form of subsidised fertilisers
• Increased supply of fertilisers at subsidised prices to help 140 million farmers
• Amount to ensure adequate availability of fertilisers to farmers for upcoming crop season
• For exports: Assistance of ₹ 3,000 crore to be given to EXIM Bank for lines of credit
• Supported projects cover areas such as Railways, power, transmission, road, transport, auto, auto components, sugar
Rs 10,200 crore additional budget outlay towards capital and industrial expenditure