In his fifth address to the nation, Prime Minister Narendra Modi announced an economic package totaling Rs 20 lakh crore to tide over the Covid-19 crisis under ‘Atmanirbhar Bharat Abhiyan’. The Rs 20 lakh crore package includes the government’s recent announcements on supporting key sectors and measures by Reserve Bank of India. PM Modi said the economic package would be around 10 percent of the GDP. This will play an important role in the ‘Atmanirbhar Bharat Abhiyan’.
  1. The mega Rs 20 lakh crore stimulus package announced on 12 May 2020 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. 
  2. 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.
  3. 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
  4. While the March stimulus was 0.8 per cent of GDP, RBI's cut in interest rates and liquidity boosting measures totalled to 3.2 per cent of the GDP (about Rs 6.5 lakh crore).
  5. The package is seen as a government attempt to check the world's fifth-largest economy hurtling towards its first full-year contraction in four decades. 
  6. According to estimates, lockdown may have led to 12.2 crore people losing jobs in April and consumer demand evaporating.
  7. As part of the Rs 1.70 lakh crore Pradhan Mantri Garib Kalyan Package (PMGKP), the government announced free wheat or rice plus pulses to poor as well as a cash payment to women and poor senior citizens and farmers over a period of three months till June.
  8. According to the latest government data, Rs 34,800 crore financial assistance using digital payment infrastructure were provided to about 39 crore beneficiaries.
  9. Under the Pradhan Mantri Garib Kalyan Ann Yojana 67.65 lakh MT of foodgrains have been lifted by 36 states/UTs for April 2020. Around 16 LMT of foodgrains have been distributed, covering 60.33 crore beneficiaries by 36 states/UTs for April 2020.
  10. The special economic package would focus on land, labour, liquidity and laws, it would benefit labourers, farmers, honest tax payers, MSMEs and cottage industry. Finance Minister will announce details of special economic package.
  11. The prime minister said the goal of the country would be to become self-reliant, and identified economy and infrastructure as key drivers for it. He said making the country self-reliant was only way to make 21st century belong to India.
  12. India’s self-reliance will be based on five pillarseconomy, infrastructure, technology driven system, vibrant demography and demand
Major takeaways of PM Address
  1. Lockdown 4 will be announced before May 18 and will have new rules.
  2. This package focuses on land, labour, liquidity and law. It will help small industries and MSMEs.
  3. The irreparable loss which occurred due to the pandemic is beyond any explanation
  4. India has converted the challenge of coronavirus into an opportunity
  5. India needs to fulfil its role as one of the leaders in the 21st century
  6. The Pandemic has taught us the true value of self-reliance
  7. India has always been a leader and our efforts at International forums are a testimony.
  8. 5 pillars of India's self-reliance- Economy ,Infrastructure, System, Demography, Demand.
  9. India's Covid-19 count has reached 70,756, while the number of deaths due to the infection stood at 2,293. 
  10. Maharashtra, with 23,401 confirmed cases is the worst-affected so far and is followed by Gujarat with 8,541 cases.