In the Right Direction

Context: Announcement of Atmanirbhar Bharat 3.0 package should help boost economic sentiment.

Previous Government measures for economic recovery

• Atmanirbhar Bharat package

• Production-linked incentive scheme for ten important sectors:  help to boost manufacturing output

• Portable ration card scheme: 28 states and Union Territories have been brought under

• Support to power distribution companies: Over Rs 1 trillion worth of liquidity has been provided to power distribution companies.

Measures under Atmanirbhar Bharat 3.0 package

• Support for employment creation in the formal sector: below a threshold wage.

• To support stressed sectors: Extended credit guarantee scheme to stressed sectors

• Interventions in the real estate sector

•  Additional sum of Rs 18,000 crore for the Pradhan Mantri AWAS Yojana in urban areas which will create about 7.8 million jobs
• Proposed Amendment to the Income Tax Act to provide relief in cases where transactions happen below circle rates.

• Raising funds for infrastructure projects: This will be done by infusing equity into the National Investment and Infrastructure Fund

• Generating employment under the Mahatma Gandhi National Rural Employment Guarantee Act: The government will provide additional Rs 10,000 crore for the PM Garib Kalyan Rozgar Yojana

Conclusion: The government has done well to find space to support economic activity under the given fiscal constraints.