Finance Minister Nirmala Sitharaman announced the third instalment of fiscal measures under the #AtmaNirbharYojana, on the 12th of November 2020. This scheme is all set to boost employment and also incentives the creation of new employment opportunities.
During the announcement, the FM said that “India is seeing a strong recovery taking root in the economy, as seen by increased goods and service tax collections and other metrics.” She opines that this scheme is not just to meet the pent-up demands as it is all set to create several opportunities.
Here are some of significant traits of the announcement that you must heed your attention to:
- The brand new update aim at creating benefits to companies and individuals, particularly those who lost their jobs due to the Covid-19 induced lockdowns. This is in favour to those individuals who lost their jobs between the 1st of March 2020 and 30th of September 2020. However, companies with employees fewer than 50 must hire a minimum of two employees and the companies with more than 50 employees must hire five or more new individuals.
2. Through this scheme, the government has also announced that it will provide 900
crore INC financial support to the #Research&Development of Covid-19 and its
3. The scheme also announced the PM Awas Yojana (Urban) where 18,000 crore shall be provided so as to help achieve the ground work of around 1.2 million houses and the completion of around 1.8 million houses.
4. The #PerformanceSecurityDeposit is to be reduced to 3% until the 31st of December 2020, and this is all set to provide relief to contractors in the construction and infra sectors.
5. The scheme aims at aiding farmers as well, as it aims to provide a 65,000 crore worth of subsidy for the fertilisers. This is said to benefit around 14 million farmers.
6. At the centre of it all, this scheme also aims at helping out the industries and industrial infrastructure development and has announced Rs 10,200 crore budget for the same.
7. However, the most significant update is the #AtmanirbharBharatRozgarYojana
which aims at the creation of employment opportunities to aid during the Covid-19 recovery phase.
8. The government has also announced to bear 12% contribution for the employee and the employer for the next two months. Through this, the government aims at nullifying the financial burden that will be created on the companies who are urged to create new jobs.
9. The Emergency Credit Line Guarantee Scheme (ECLGS) is also extended till the 31st of March 2021, and this is all set to help the MSMEs, business enterprises, MUDRA borrowers and many such loan bearers.
10. A 1.46 trillion boost for manufacturing PLIs – Production Linked Incentives was also announced. This is expected to provide 200,000 – 300,000 direct employment opportunities for the next years.
Giving her final comments regarding the announcements, Nirmala Sitharaman said that “We are yet again proving that the policy that we are taking up even in PLI through which we want manufacturers to come to India is clearly to say we want to build on our strength but yet link with the global value chains.”
– Ananya N K