Lok Sabha Question No. 1021 (UNSTARRED), answered on 2021-02-08
Subject: Large Stimulus Packages
Ministry: FINANCE
Asked by: Sisir Kumar Adhikari

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

## LOK SABHA

## UNSTARRED QUESTION NO. 1021

TO BE ANSWERED ON 08.02.2021

## LARGE STIMULUS PACKAGES

## 1021. SHRI SISIR KUMAR ADHIKARI:

Will the Minister of FINANCE be pleased to state:

- (a) whether it is a fact that the economists have been calling for large stimulus packages amounting to double digit percentages of Gross Domestic Product(GDP), despite the strain on the exchequer;
- (b) if so, whether it is a fact that India's GDP has shrunk by 23.9 per cent in the first quarter of the financial year 2020-21 against 5.2 per cent growth in Q1 2019-20 and has dipped to minus by 27.11 per cent in August, 2020; and
- (c)  if so, the constructive action plan taken for positive GDP?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ANURAG SINGH THAKUR)

- (a)  Government announced a special  economic and comprehensive package  under AtmaNirbhar Bharat including measures taken by RBI amounting to about Rs. 27.1 lakh crores - more than 13 percent of India's GDP - to combat the impact of the COVID-19 pandemic and to revive economic growth.
- (b) As per the Quarterly Estimates of Gross Domestic Product (GDP) released by National Statistical Office (NSO), M/o Statistics and Program Implementation, India's GDP growth contracted by 23.9 percent in the first quarter (Q1) of 2020-21  as  against  5.2  percent  growth  in  Q1  of  2019-20.  After  Q1  of  2020-21,  GDP  growth  witnessed  a  lower contraction of 7.5 percent in second quarter (Q2) of 2020-21 as against 4.4 percent growth in Q2 of 2019-20.
- (c)  In  FY  2020-21,  Government  announced  a  special  economic  and  comprehensive  package  under  AtmaNirbhar Bharat including measures taken by RBI amounting to about Rs. 27.1 lakh crores - more than 13 per cent of India's GDP-  to  combat  the  impact  of  the  COVID-19  pandemic  and  to  revive  economic  growth.  The  package  included, among  others,  in-kind  and  cash  transfer  relief  measures  for  households, employment  provision  measures  under Pradhan  Mantri  Garib  Kalyan Rojgar  Abhiyaan  and  increased  allocation  under  MGNREGS,  credit  guarantee  and equity infusion-based relief measures for MSMEs and NBFCs and regulatory and compliance measures. Structural reforms were also announced as part of the AatmaNirbhar Bharat Package which, inter alia, included deregulation of the agricultural sector, change in definition of MSMEs, new PSU policy, commercialization of coal mining, higher FDI limits  in  defence  and  space  sector,  development  of Industrial  Land/  Land  Bank  and  Industrial Information  System, revamp of Viability Gap Funding scheme for social infrastructure, new power tariff policy and incentivizing States to undertake sector reforms. The implementation of the package is reviewed and monitored regularly.

The  Union  Budget  2021-22  has  also  announced  a  number  of  measures  to  support  broad-based  and  inclusive economic development under six pillars listed as under:

## i. Health and Wellbeing

Key measures include a holistic approach to strengthen healthcare with focus on three areas- Preventive, Curative, and Wellbeing, Rs. 35,000 crore for COVID-19 vaccine, roll out of Made-in-India Pneumococcal Vaccine across the country, launching of a new centrally sponsored scheme PM AtmaNirbhar Swasth Bharat Yojana in addition to

National Health Mission, Mission Poshan 2.0, Universal Coverage of Water Supply, Urban Swachh Bharat Mission 2.0, Clean Air, Scrapping policy, etc.

## ii. Physical & Financial Capital, and Infrastructure

Key  measures  include  Production  Linked  Incentive  scheme  (PLI)  in  13  Sectors,  Mega  Investment  Textiles  Parks (MITRA),  7  Textile  Parks,  expansion  of  National  Infrastructure  Pipeline  (NIP)  to  7,400  projects,  creation  of institutional structures for Infrastructure Financing, National Monetization Pipeline, sharp increase in Capital Budget, economic  corridors,  flagship  corridors/expressways,  National  Rail  Plan  for  India  (2030),  future  dedicated  freight corridor  projects,  strengthening  of  urban  infrastructure,  launching  of  National  Hydrogen  Energy  Mission  2021-22, extension  of  Ujjwala  Scheme  to  cover  1  crore  more  beneficiaries,  development  of  a world  class  Fin-Tech  hub, increasing FDI limit in insurance sector from 49 percent to 74 percent, setting up of Asset Reconstruction Company Limited  and  Asset  Management  Company,  recapitalization  of  PSBs  easing  compliance  requirement  of  small companies,  amendments  to  the  Deposit  Insurance  and  Credit  Guarantee  Corporation  (DICGC)  Act,  1961, decriminalization  of  the  Limited  Liability  Partnership  (LLP)  Act,  2008,  promoting  start-ups  and  innovators  by incentivizing  the  incorporation  of  one  person  companies,  strengthening  NCLT  framework,  new  policy  for  Strategic Disinvestment,  Government  Financial  Reforms  such  as  universal  application  of  Treasury  Single  Account  (TSA) System, rationalization of Centrally Sponsored Schemes, development of Multi-State Cooperatives, etc.

## iii. Inclusive Development for Aspirational India

Key measures include ensuring MSP at minimum 1.5 times the cost of production across all commodities, extension of  SWAMITVA  Scheme  to  all  States/UTs,  enhancing  agricultural  credit  and  infrastructure  funds,  investments  to develop modern fishing harbours and fish landing centres, One Nation One Ration Card, Rs. 15,700 crore  budget allocation to MSME Sector, etc.

## iv. Reinvigorating Human Capital

Key measures include qualitative strengthening of 15000 schools under National Education Policy, setting up of 100 new Sainik Schools, Higher Education Commission of India, Central University in Leh, 750 Eklavya model residential schools in tribal areas, revamped Post Matric Scholarship Scheme for welfare of SCs, measures to enhance skilling like realignment of existing National Apprenticeship Training Scheme (NATS), etc.

## v. Innovation and R&D

Key  measures  include  Rs.  50,000  crore  outlay  under  National  Research  Foundation  (NRF),  Rs.  1,500  crore  for financial  incentives  to  promote  digital  modes  of  payment,  PSLV-CS51  launch,  Gaganyaan  mission  activities, launching of Deep Ocean Mission, etc.

## vi. Minimum Government and Maximum Governance

Key measures include reforms to rationalize the functioning of Tribunals, National Commission for Allied Healthcare Professionals Bill in Parliament to ensure transparent and efficient regulation of the 56 allied healthcare professions, National  Nursing  and  Midwifery  Commission  Bill  to  bring  transparency,  efficiency  and  governance  reforms  in  the nursing  profession,  setting  up  of  a  Conciliation  Mechanism  for  quick  resolution  of  contractual  disputes,  Rs.  3768 crores  for  India's  first  digital  census,  Rs.1000  crores  for  the  welfare  of  tea  workers  especially  women  and  their children in Assam and West Bengal, etc.

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