Lok Sabha Question No. 4166 (UNSTARRED), answered on 2023-03-27
Subject: Impact of COVID-19
Ministry: FINANCE
Asked by: Geetha Viswanath Vanga, Adala Prabhakara Reddy, C.N. Annadurai

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 4166

DUE FOR ANSWERED ON MARCH 21, 2023

## Impact of COVID-19

4166. SHRIMATI VANGA GEETHA VISWANATH: SHRI ADALA PRABHAKARA REDDY: SHRI C.N. ANNADURAI:

Will the Minister of FINANCE be pleased to state:

- (a) whether  the  Government  has  conducted  any  comprehensive  study  of  the impact of the COVID-19 pandemic on the economy; (b) if so, the details thereof and if not, the reasons therefor; (c) the  details  of  the  corrective  steps  taken  by  the  Government  to  address  the adverse economic impact of the COVID-19 pandemic; (d) whether the Government has received any global aid to tackle the economic fallout of the COVID-19 pandemic; (e) if so, the details thereof and the reasons for the same; and the details of the steps taken to enhance economic preparedness in case of

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHHARY)

(a)-(c):  The  Government  has  been  assessing  the  impact  of  the  pandemic  on  the Indian economy from time to time. Based on such assessment, the government has taken various measures to increase growth and inclusivity in the economy.

For  increasing  growth,  early  measures  included  a  ramp-up  in  medical  and  health infrastructure  followed  by  the  launch  of  a  massive  vaccination  programme  which strengthened domestic demand.  Domestic demand  was  further strengthened through a calibrated fiscal stimulus at various points of time during 2020-21. In the next  three  budgets  of  2021-22,  2022-23  and  2023-24,  capital  expenditure  of  the central  government  was  enhanced  by  30-35  per  cent  each  year  to  inject  a substantial fiscal stimulus in the economy. The central government also provided a substantial  increase  in  assistance  to  the  states  for  expanding  their  capital  budget.

- (f) future pandemics?

The  government  has  placed  investment  in  infrastructure  as  the  central  driver  for increasing economic growth.

The  government  also  enhanced  inclusivity  of  growth  both  at  the  level  of  small enterprises and poor individuals. Relief measures were announced for Micro, Small and Medium Enterprises (MSMEs), such as the launch of the Emergency Credit link Guarantee Scheme (ECLGS) to support eligible MSMEs and business enterprises in meeting their operational liabilities and re-starting the business after  the disruption caused by the pandemic. Stressed MSME were also assisted through subordinate debt  with  partial  guarantee,  equity  infusion  through  Fund  of  Funds,  and  faster clearing  of  payment  dues  to  them.  The  definition  of  MSMEs  was  also  changed  to encourage them to expand.

Inclusivity at the individual level was enhanced through Pradhan Mantri Garib Kalyan Yojana (PMGKY), which among other measures provided subsidised foodgrains to poor;  ex-gratia  for  poor  senior  citizens,  disabled  and  widows;  front-loading  of  PMKISAN  subsidy  to  farmers;  insurance  coverage  for  healthcare  workers;  wage increase  for  MGNREGA  workers;  and  cash  transfers  for  PMJDY  Women  account holders.  To  boost  low  wage  earners  in  the  organised  sector,  24  per  cent  of  the monthly wages were transferred in Provident Fund (PF) account of workers for three months.  Employees'  Provident  Fund  Regulations  were  amended  to permit  early withdrawal of funds  by  workers  from  EPFO  account.  Atma  Nirbhar  Bharat  Rozgar Yojana was also launched to incentivize job creation during COVID-19 recovery.

(d)-(e): As per Controller of Aid, Audit and Accounts, DEA, the details of global aid received by the Government as on 21.3.2023, to tackle the economic fallout of the COVID-19 pandemic is presented in Annexure-I.

(f):  The  pandemic  led  to  global  supply  chain  disruptions  as  nationwide  lockdowns temporarily  restricted  the flow  of  raw  materials  and finished  goods  across  national borders. To guard against such occurrences in the future, the government decided to make  India's  economy  self-reliant  through  the  introduction  of  Production  Linked Incentive  (PLI)  Scheme  for  boosting  domestic  production  capabilities.  The  PLI scheme,  now  extended  to  14  sectors,  is  also  key  to  generating  jobs  in  the manufacturing sector.

To  further  minimize  economic  disruptions  caused  by  lockdown,  the  government invested in digital infrastructure such as the Unified Payment interface (UPI). There has  been  a  rapid  adoption  of  UPI  payments  due  to  its  ability  to  allow  easy contactless transactions. UPI payments played a major role in ensuring the effective, efficient  and  timely  transfer  of  subsidies  and  government  benefits  to  the  bank accounts of the beneficiaries during the pandemic. Initiatives such as the creation of digital  identities  like  Aadhaar,  the  launch  of  e-shram  portal  for  registration  of unorganised workers, registration of MSMEs on the Udyam portal have effected a digital easing of business.  The private sector of India has also upscaled the delivery of both IT and non-IT based services within the country and abroad. Strengthening of digital  capacities  is  critical  to  enhancing  economic  preparedness  against  future pandemics.

## Annexure-I

| List of Covid loans along-with disbursements as on 21st March 2023   | List of Covid loans along-with disbursements as on 21st March 2023        | List of Covid loans along-with disbursements as on 21st March 2023   | List of Covid loans along-with disbursements as on 21st March 2023   | List of Covid loans along-with disbursements as on 21st March 2023   | List of Covid loans along-with disbursements as on 21st March 2023   | List of Covid loans along-with disbursements as on 21st March 2023   |
|----------------------------------------------------------------------|---------------------------------------------------------------------------|----------------------------------------------------------------------|----------------------------------------------------------------------|----------------------------------------------------------------------|----------------------------------------------------------------------|----------------------------------------------------------------------|
|                                                                      |                                                                           |                                                                      |                                                                      | Loan                                                                 | Disbursements                                                        | Disbursements                                                        |
| Funding Agency                                                       | Loan/ Grant Title                                                         | Implementing Agency                                                  | Agreement date                                                       | Loan Amount (in USD Millions)                                        | LC in Millions                                                       | INR in Crores                                                        |
| ADB                                                                  | Asia Pacific Disaster Response Fund (Covid-19 Emergency Response Project) | MH&FW                                                                | 22-01-2021                                                           | 3                                                                    | 3                                                                    | 21.8                                                                 |
| ADB                                                                  | COVID-19 Active Response and Expenditure Support Program                  | MOF                                                                  | 28-04-2020                                                           | 500                                                                  | 500                                                                  | 3,817.1                                                              |
| ADB                                                                  | COVID-19 Active Response and Expenditure Support Program                  | MOF                                                                  | 28-04-2020                                                           | 1,000                                                                | 1,000                                                                | 7,634.1                                                              |
| ADB                                                                  | Responsive COVID-19 Vaccines for Recovery Project                         | MH&FW-BCS                                                            | 31-12-2021                                                           | 500                                                                  | 499.3                                                                | 3,938.7                                                              |
| ADB                                                                  | Responsive COVID-19 Vaccines for Recovery Project                         | MH&FW-BCS                                                            | 31-12-2021                                                           | 1,000                                                                | 578.6                                                                | 4,442.9                                                              |
| AIIB                                                                 | India COVID-19 Emergency Response and Health Systems Preparedness Project | MOH&FW_NHM                                                           | 08-05-2020                                                           | 500                                                                  | 500                                                                  | 3,785.6                                                              |
| AIIB                                                                 | COVID-19 Active Response and Expenditure Support Program                  | DEA_OMI                                                              | 19-06-2020                                                           | 750                                                                  | 750                                                                  | 5,624.9                                                              |
| AIIB                                                                 | Coordinated & Responsive Indian Social Protection Sys Pgm (Post-Covid)    | DEA_OMI                                                              | 03-09-2021                                                           | 500                                                                  | 500                                                                  | 3,736.6                                                              |
| AIIB                                                                 | Responsive COVID-19 Vaccines for Recovery Project                         | MOH&FW_UIP                                                           | 21-01-2022                                                           | 500                                                                  | 398.2                                                                | 3,092.7                                                              |
| GODE                                                                 | Covid-19 Social Protection Crisis Response Programme Phase II             | BC_DEA                                                               | 16-12-2020                                                           | 210                                                                  | 210                                                                  | 1,813.3                                                              |
| GODE                                                                 | Covid-19 Social Protection crisis Response Programme                      | BC_DEA                                                               | 21-08-2020                                                           | 250                                                                  | 250                                                                  | 2,234.3                                                              |
| GOFR                                                                 | AFD COVID -19 Loan                                                        | BC_DEA                                                               | 18-06-2020                                                           | 200                                                                  | 200                                                                  | 1,755.3                                                              |
| GOJP                                                                 | COVID-19 Crisis Response Emergency Support Loan                           | MOH&FW_NHM                                                           | 31-08-2020                                                           | 50,000                                                               | 50,000                                                               | 3,231.8                                                              |
| GOJP                                                                 | The COVID-19 Crisis Response Support Loans for Social Protection          | DEA                                                                  | 08-02-2021                                                           | 30,000                                                               | 30,000                                                               | 2,019.5                                                              |
| IBRD                                                                 | COVID-19 Emergency Response and Health Systems Preparedness Project       | MOH&FW_NHM                                                           | 03-04-2020                                                           | 1,000                                                                | 1,000                                                                | 7,534.8                                                              |
| IBRD                                                                 | Accelerating India's COVID-19 Social Protection Response Program          | DEA_FB                                                               | 15-05-2020                                                           | 200                                                                  | 200                                                                  | 1,508.3                                                              |

| IBRD   | Coordinated &Responsive Indian Social Protection Sys Prog (Post-Covid)    | DEA_FB   | 15-07-2021   | 387.5    | 387.5    | 2,858.6   |
|--------|---------------------------------------------------------------------------|----------|--------------|----------|----------|-----------|
| IDA    | Accelerating India's COVID-19 Social Protection Response Program          | DEA_FB   | 15-05-2020   | 226.8    | 226.8    | 2,323.1   |
| IDA    | Accelerating India's COVID-19 Social Protection Response Program          | DEA_FB   | 15-05-2020   | 240.4    | 240.4    | 1,813.2   |
| IDA    | Second Accelerating India's COVID-19 Social Protection Response Program   | DEA_FB   | 16-12-2020   | 291.4    | 291.4    | 2,119.9   |
| IDA    | Second Accelerating India's COVID-19 Social Protection Response Program   | DEA_FB   | 16-12-2020   | 77       | 77       | 809       |
| IDA    | Coordinated &Responsive Indian Social Protection Sys Prog (Post-Covid)    | DEA_FB   | 15-07-2021   | 94.5     | 94.5     | 697.1     |
| IDA    | Coordinated &Responsive Indian Social Protection Sys Prog (Post-Covid)    | DEA_FB   | 15-07-2021   | 12.6     | 12.6     | 131.9     |
| NDB    | Emergency Assistance Program in Combating COVID- 19                       | DEA_OMI  | 05-05-2020   | 1,000    | 1,000    | 7,566     |
| NDB    | Emergency Program Loan Supporting India's Economic Recovery from COVID-19 | DEA_OMI  | 16-12-2020   | 1,000    | 1,000    | 7,307.8   |
|        | Total                                                                     |          |              | 90,443.2 | 89,919.4 | 81,818.3  |

Source: Controller of Aid, Audit and Accounts, DEA