New Delhi: Prime Minister Narendra Modi on Tuesday announced a Rs 20 lakh crore economic package for boosting the economy struggling through the COVID-19 lockdown in the country. It will help land, labour, liquidity and laws, he said during an address to the nation at 8pm on Tuesday.
The Finance Minister will give more details of the package on Wednesday. The combined package works out to roughly 10 per cent of the GDP, making it among the most substantial in the world after the financial packages announced by the United States, which is 13 per cent of its GDP, and by Japan, which is over 21 per cent of its GDP. It includes previously announced measures to save the lockdown-battered economy, and focuses on tax breaks for small businesses as well as incentives for domestic manufacturing.
The Rs 20 lakh crore package includes Rs 1.7 lakh crore package of free foodgrains to poor and cash to poor women and elderly, announced in March, as well as the Reserve Bank's liquidity measures and interest rate cuts.
The details of lockdown 4.0 will be revealed before May 18, the Indian PM added.
"When COVID-19 pandemic began, India did not manufacture a single PPE kit or N95 mask. But today India manufactures over 2 lakh PPE kits and N95 masks daily," the Prime Minister said while emphasising on the importance of self-reliance.
This is an unprecedented crisis; we have to protect ourselves and move ahead as well. Making India self-reliant is only way to make 21st century belong to India, he added.
Economy, infrastructure, a technology driven system, a vibrant demography and demand are the five pillars of India, the PM said.
Video conference with CMs
The address comes a day after the PM's video conference with the chief ministers of all states and union territories. Chief ministers of at least four states - Maharashtra, West Bengal, Punjab and Telangana – sought extension of the lockdown during the video conference.
Modi on Monday said reduction of transmission rate of the novel coronavirus and gradual increase in public activities while adhering to all guidelines are the "twofold" challenges and now the Centre and states will have to work towards achieving the twin objectives.
Addressing chief ministers via a video conference, the prime minister also said he is of the "firm view that the measures needed in the first phase of lockdown were not needed during the second phase and similarly the measures needed in the third phase are not needed in the fourth," according to an official statement.
The prime minister reaffirmed the importance of 'do gaz doori' (a distance of two yards) and added that suggestion of "night curfew" raised by many chief ministers would surely reaffirm the feeling of caution among people.
Referring to the resumption of train services, Modi said it was needed to rev up the economic activity. But, he made it clear that services on all routes will not be resumed and that only a limited number of trains would ply.
About the concerns raised by several chief ministers during the lockdown period, Modi said suggestions made by the states for a "roadmap on economy" have been given "due consideration".
The last time the prime minister had addressed the nation was on April 14.
