Indian Finance Minister Nirmala Sitharaman on Thursday unveiled 12 fresh stimulus measures worth $35.81 billion to help the economy recover from the pandemic blues. While announcing the decisions, Sitharaman also said that a distinct economic recovery is visible.
“The economic recovery is distinctly and clearly happening. A strong pick up in the output not only reveals the pent up demand but also a strong pitch for growth. Today we want to announce 12 measures,” said Sitharaman.
The measures announced today include incentives to companies to recruit people and create jobs, the extension of an emergency credit guarantee scheme for small businesses till 21 March, credit guarantee support for 26 stressed sectors, production-linked incentives for 10 sectors, and the infusion of equity into the National Infrastructure Investment Fund and a fertiliser subsidy, among others.
Focusing on jobs, Sitharaman said that subsidy will be provided to the companies who either employ new staff or provide jobs again to the employees who were laid off due to the impact of the pandemic.
“In case of organisatons with less than one thousand employees, the government will bear 12 percent of the employees contribution, as well as the employers' share of 12 percent of the wages towards an employee-provided fund for the next two years. For those organisations with a staff of more than one thousand,, the government will bear the employees’ contribution,” said Sitharaman.
As another very important measure that is part of the twelve point stimulus unveiled today, the minister announced a fertiliser subsidy to the tune of $8.78 billion for the benefit of farmers.
The Indian economy tanked in the April – June,with the Gross Domestic Product contracting by 23.9 percent. In January – March this year, India witnessed GDP growth of 3.1 percent.