- Moving Resolutely Towards the Post-Pandemic Future

Context: Many countries are stumbling during the pandemic, but India has seized control of its destiny, is recovering and making bold plans.

Steps taken by India to address the impact of COVID

• Calibrated measures:

• Implementing a rapid lockdown to save lives and 

• Simultaneously positioning the economy for strong revival through the Atmanirbhar Bharat policy package.

• Saving of the livelihoods: Through Pradhan Mantri Garib Kalyan Yojana, around 80 crore fellow citizens are being provided rations through the Public Distribution System. 

• Over 20 crore Jan Dhan women account holders have received financial assistance directly into their bank accounts.

• Revival of rural economy:  Rural economy has received over ?2 lakh crore of cash directly into beneficiary accounts from the Central government. 

• Massive cash payments have driven rural confidence with consumer goods, motorcycle, and tractor purchases at pre-pandemic levels.

• Reserve Bank of India (RBI) and policy actions: MSMEs and large corporates have also been provided relief through coordinated action between the RBI and the government. 

• Extension of compliance filings and tax payments and Loan Moratoriums.
• Collateral free loans: ?3 lakh crore has been made available as guaranteed collateral-free loans for MSME borrowers. 
• Refinancing facilities have been provided to the specialized banks such as National Bank for Agriculture and Rural Development (NABARD) and Non-banking financial companies.
• One-time restructuring scheme to provide relief to stressed sectors by RBI.

• Reforms in agriculture: 

• Through a series of ordinances: 

• Price controls have largely been removed in agriculture, 
• Farmers can now sell their crops to anyone anywhere, and 
• Contract farming has been allowed. 

• Financial Support:

• Kisan credit cards for all fishermen, dairy farmers, and other agriculturists. 
• An additional ?1 lakh crore has been earmarked to build rural infrastructure. 
• Animal husbandry has been sanctioned with ?15,000 crore fund support.

• Indigenization of defence production: Defence production is being indigenized with 101 items meant only for domestic production. 

• Defence foreign direct investment of 74% is now allowed through the automatic route. 

• Opening up of coal sector: To the private sector to ensure that imported coal worth over ?1 lakh crore is replaced with domestic coal. 
• Disinvestment: Full disinvestment in all public sector enterprises in non-strategic sectors.
• Electronics manufacturing: Production-linked incentives for electronics manufacturing to promote smartphone production in India.