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FM tables Economic Survey

The survey  prepared by the Economic Division of the Department of Economic Affairs gives insights into the state of the economy…reports Asian Lite News

Union Finance Minister Nirmala Sitharaman on Tuesday tabled the Economic Survey 2023-2024 in the Lok Sabha.

Earlier, Prime Minister Narendra Modi appealed to all parties to participate in the discussion in Parliament and to end bitterness for the betterment of the country.

“I would like to request all parliamentarians to participate in all discussions in the House, no matter how ideologically opposed they are. Opposite ideologies are not bad, but negative ideologies are. That is when the limit of thoughts comes to an end. The country does not need negativity,” Modi said.

Urging all MPs to have progressive ideologies, the Prime Minister said, “The country needs a progressive ideology that fuels development and takes the country to great heights.”

Asking people to rise above party lines and represent the voices of the countrymen in the Parliament, PM Modi said, “I would like to tell everyone that people have sent us here for the country and not for our respective parties. This Parliament is not for our parties but for the country. This Parliament is not just restricted to Parliamentarians but it is for 140 crore people.”

“I hope that we utilize the temple of democracy positively to fulfil the aspirations of ordinary citizens in India,” he added.

“I would like to ask all the parties to rise above party lines and dedicate themselves to the country and use this dignified platform of Parliament for the next 4.5 years. In the election year of January 2029, you can play any game, but till then we should participate for the empowerment of the farmers, youth and the country”, the Prime Minister said.

Prime Minister Modi said that it is a moment of pride for the government to present the inaugural budget for the third time after government formation after 60 years.

“It is a matter of pride that after 60 years, a government has come to power for the third time and will present the first Budget for the third time…I have been giving guarantees to the people of the country and our mission is to bring this to the ground. This Budget is important budget for Amrit Kaal. Today’s budget will decide the direction for the next 5 years of our term. This budget will also become a strong foundation of our dream of ‘Viksit Bharat’,” he said.

The Economic Survey document, prepared by the Economic Division of the Department of Economic Affairs in the Ministry of Finance and formulated under the supervision of the chief economic adviser, will give insights into the state of the economy and various indicators of 2023-24 (April-March) and some outlook for the current year.

The Economy Survey document may also give some idea about the tone and texture of the actual Budget for 2024-25, to be presented on Tuesday. The first economic survey reportedly came into existence in 1950-51, when it used to be a part of the budget documents. In the 1960s, it was separated from the Budget documents and presented the day before the Union Budget.

The most important feature that many will look out for is its central theme. In 2022, the central theme was ‘Agile Approach’, which emphasized on India’s economic response to the COVID-19 pandemic shock. In 2023, it was ‘recovery complete’, when the economy staged a broad-based recovery from pandemic-induced contraction, Russian-Ukraine conflict, and inflation, and ascended to the pre-pandemic growth path.

Typically, along with the sectoral chapters, the Survey document also adds new need-based chapters that need focus. All eyes will be on the major announcements made by the finance minister and the government’s forward-looking guidance about the overall economy.

With this upcoming budget presentation, Finance Minister Nirmala Sitharaman will surpass the record set by former Prime Minister Morarji Desai, who presented five annual budgets and one interim budget between 1959 and 1964 as finance minister. Sitharaman’s upcoming budget speech will be her seventh. (ANI)

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Economists seek capital expenditure during pre-budget meet with FM

Industry bodies, including the Confederation of Indian Industry (CII), urged the government to increase capital expenditure in the upcoming budget. During the discussions, economists also highlighted on the need to boost capital expenditure…reports Asian Lite News

Finance Minister Nirmala Sitharaman chaired the first pre-budget meeting with leading economists in Delhi on Wednesday as part of pre-budget consultations for the General Budget 2024-25.

The discussions focused on critical issues such as boosting capital expenditure and reducing the fiscal deficit.

During the discussion, economists emphasized that the fiscal deficit will be further reduced in the upcoming budget, and the government is concentrating on policies to generate employment growth.

“The government has shown fiscal prudence and has controlled fiscal deficit. This time, revised estimates also show positive indications. The government has already stated that the fiscal deficit will be lower in the budget. At the same time, employment remained an important issue of discussion” said Ashwani Mahajan, National Co-convener of the Swadeshi Jagaran Manch.

On the demand for granting special status to some states, Mahajan added, “There’s nothing on special status for states. The government is already doing a lot on capital expenditure, with at least more than 3 per cent of GDP being spent on it.”

Industry bodies, including the Confederation of Indian Industry (CII), urged the government to increase capital expenditure in the upcoming budget. During the discussions, economists also highlighted on the need to boost capital expenditure.

“It is very much in the discussion, that CapEx (Capital Expenditure) has driven or helped to drive the growth of the economy, which should be sustained. And private sector investment and consumption growth should also be sort of pushed to sustain this growth” said Nagesh Kumar, Director and Chief Executive of the Institute of Studies in Industrial Development.

The meeting was attended by the Finance Secretary, and the Secretaries of the Departments of Economic Affairs, Revenue, Financial Services, and Corporate Affairs, along with the Chief Economic Adviser of India.

These discussions with industry experts and economists are crucial as they lay the groundwork for the government’s fiscal policy and economic strategies in the forthcoming budget.

reparation for the upcoming Union Budget 2024-25 commenced in Delhi on Thursday. Finance Minister Nirmala Sitharaman has directed officials to initiate the budget preparation process, emphasizing the need for meticulous planning and comprehensive analysis.

This early start aims to ensure a well-structured budget that effectively addresses the country’s economic priorities and challenges. The collaborative efforts of the ministry’s team are expected to contribute to a robust and strategic financial plan for the upcoming fiscal year.

According to sources, the Union Budget for 2024-25 is likely to be tabled in Parliament by the third week of July. Earlier, on February 1, Finance Minister Nirmala Sitharaman presented the interim budget for 2024-2025 in Parliament due to the election year.

The Interim Budget is presented by a government that is either in a transition period or in its last year in office ahead of general elections. The purpose of the interim budget is to ensure the continuity of government expenditure and essential services until the new government can present a full-fledged budget after taking office.

Now, after the election results, Finance Minister Nirmala Sitharaman will present her seventh budget in a row. It will also be the full budget for the year 2024-25.

In the February interim budget, the government focused on economic policies that foster growth, facilitate inclusive development, improve productivity, and create opportunities for various sections, while noting that it will pay utmost attention to the eastern region, including the states of Bihar, Jharkhand, Chhattisgarh, Odisha, and West Bengal, to make them growth engines as part of the goal to make India a developed country by 2047.

In her second stint, Nirmala Sitharaman formally assumed charge as Union Minister of Finance and Corporate Affairs on Wednesday morning.

She was greeted at the office in North Block by Finance Secretary TV Somanathan and other Secretaries of the Ministry of Finance and Corporate Affairs.

Nirmala Sitharaman, who has been a Union Minister in both the 2014 and 2019 Modi cabinets, took oath as Union Cabinet Minister in Prime Minister Narendra Modi’s new Union Council of Ministers on Sunday evening in the forecourt of Rashtrapati Bhavan, along with another 70 Council of Ministers. (ANI)

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Big Infra Gets Massive Spike 

New Delhi: Union Finance Minister Nirmala Sitharaman displays a digital tablet wrapped in 'bahi khata' before presenting the Union Budget 2023, at the Ministry of Finance in New Delhi on Tuesday, Feb. 1, 2023. (Photo: Biplab Banerjee/IANS)

The gross market borrowing of the government has been fixed at Rs 14.13 lakh crore while the net market borrowing is proposed at RS 1.75 lakh crore which is lower than the corresponding figure for 2023-24...reports Asian Lite News

The allocation for big infrastructure projects to be taken up in 2024-25 has been raised to Rs 11.1 lakh crore which is an 11.1 per cent increase over the previous year

Finance Minister Nirmala Sitharaman decided to stick to the path of fiscal consolidation path as she pushed for economic growth and inclusive development in the interim Budget 2024-25 presented in Parliament on Thursday. The Finance Minister has reduced the fiscal deficit target to 5.1 per cent of GDP for 2024-25 while increasing the government’s capital expenditure on big infrastructure projects to push the economic growth rate.

This has been made possible due to the robust increase in tax collections in a fast-growing economy. The allocation for big infrastructure projects to be taken up in 2024-25 has been raised to Rs 11.1 lakh crore which is an 11.1 per cent increase over the previous year. The gross market borrowing of the government has been fixed at Rs 14.13 lakh crore while the net market borrowing is proposed at RS 1.75 lakh crore which is lower than the corresponding figure for 2023-24.

“Lower market borrowings by the government will leave more funds for private sector corporates to get loans for investment which will accelerate the country’s economic growth further,” the Finance Minister said in her Interim Budget speech. The Interim Budget has also created a corpus of Rs 1 lakh crore for a 50-year interest-free loan for the farm sector. The Finance Minister said that she was making any changes in the direct or indirect tax rates in the interim budget. Sitharaman said that the Indian economy has witnessed a transformational change and fruits have development have started reaching people at a mass scale. “The Modi government’s polcy of inclusive development and growth is a deliberate departure from the past governments. Housing water electricity, bank accounts cooking gas have been provided for all. Worries of food have been eliminated with free food for 83 crore people and real incomes have increased,” she said. She said the government was committed to social justice with all-round development that would improve the capability of the people and empower them. “Social justice is a necessary model and the government’s saturation approach reflects secularism in action that prevents corruption and nepotism.

Opportunity for all. Systemic inequality is being addressed for social transformation,” she said. Top priority is being given to empower four segments that include the poor, women, youth and farmers for the support of the government, she added. “Indian economy witnessed profound positive transformation in the last 10 years,” said Sitharaman, while presenting #Budget2024 in the Parliament Presenting the Interim Budget for the fiscal year, Sitharaman highlighted the government’s commitment to inclusive development under the vision of “Sabka Saath, Sabka Vikas, and Sabka Vishwas.” “In the second term, our government strengthened its vision of Sabka Saath, Sabka Vikas, and Sabka Vishwas,” stated Sitharaman, emphasizing the continuity of the government’s commitment to the welfare of all citizens. She acknowledged the challenges posed by the once-in-a-century pandemic but noted that the country successfully overcame them, continuing its stride towards building an Atmanirbhar Bharat (self-reliant India) committed to Panch Pran and laying solid foundations for the Amrit Kaal. Sitharaman said, “The country overcame the challenges of once in a century pandemic to clang stride towards Atmanirbhar Bharat committed to Panch Pran and laid solid foundations for the Amrit Kaal”. Addressing concerns about food security, Sitharaman announced the elimination of worries through the provision of free ration for 80 crore people. “The worries about food has been eliminated through free ration for 80 crore people”, said Finance Minister.

The Finance Minister also highlighted the impact of Direct Benefit Transfer (DBT), emphasizing that savings through DBT channels have enabled more funds for the PM Garib Kalyan Yojana, a welfare program for the economically disadvantaged. “With the pursuit of Sabka Saath, the govt has assisted 25 crore people to get freedom from multidimensional poverty in last 10 years”, Sitharaman stated during her Budget speech. The Finance Minister underscored the need to focus on four major pillars: the poor, women, youth, and annadatas (farmers). “We need to focus on four major pillars — poor, women, youth and annadatas”, said Sitharaman Highlighting achievements in skill development, Sitharaman noted that the Skill India Mission has successfully trained 1.4 crore youth, contributing to their empowerment and employability. She reiterated the government’s commitment to inclusive governance, describing the administration under Prime Minister Modi as “secularism in action.”

“In the last 10 years, we have targeted every household for houses for all, water for all, and cooking gas for all,” Sitharaman declared, emphasizing the comprehensive approach towards addressing basic needs and improving living standards. Additionally, she revealed that 34 crore Mudra Yojana loans have been extended to women entrepreneurs, promoting financial inclusion and empowerment. “34 cr Mudra Yojana loans been given to women entrepreneurs”, said Finance Minister. The Finance Minister concluded her budget presentation with a positive outlook, signalling the government’s determination to continue fostering inclusive growth and development. As the nation navigates through the uncertainties of the present and builds towards the future, the budget reflects a commitment to the welfare and progress of all citizens. The Budget 2024 is expected to undergo thorough scrutiny and debates in the coming days in the Parliament, as stakeholders assess its potential impact on the nation’s economic trajectory.

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Finance Minister Sitharaman highlights India’s digital success at G20

The Finance Minister said that easy to use for people belonging to all walks of life, “the digital public goods are all government owned and there is no private profiteering on this”…reports Asian Lite News

Finance Minister Nirmala Sitharaman on Monday said that G20 nations look up to India and praise the achievements in its digital public goods infrastructure. 

“Today, when I address the G20 nations, we are proud to highlight that all of them admire India for its prolific use of technology and its leadership in utilising digital public goods. A significant portion of our Indian youth are making remarkable contributions in these areas,” she said in a video address. 

The Finance Minister said that easy to use for people belonging to all walks of life, “the digital public goods are all government owned and there is no private profiteering on this”. 

“For making India a developed nation during the next 25 years, we’re making sure that our policies reach each and every citizen of the nation,” Sitharaman said in the message. 

ALSO READ-Nirmala calls for supplementing G20 initiatives on debt crisis

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Nirmala calls for supplementing G20 initiatives on debt crisis

On Tuesday, Sitaraman also engaged in a bilateral meeting with her US counterpart. Yellen lauded India’s leadership on the issue of reform of MDBs…reports Asian Lite News

Union Finance Minister Nirmala Sitharaman on Wednesday underlined that in order to address the mounting debt crisis around the world, it is necessary to supplement current global initiatives, especially those of the G20.

Sitharaman made the remarks during the Global Sovereign Debt Roundtable meeting alongside managing director of International Monetary Fund (IMF) Kristalina Georgieva on Tuesday on the sidelines of the SpringMeetings 2023, in Washington. World Bank President David Malpass was also present while Sitharaman discussed the global debt crisis.

Taking to Twitter, the Finance Ministry wrote, “Union Finance Minister Smt. @nsitharaman participated in the Global Sovereign Debt Roundtable #GSDR meeting along with Ms@KGeorgieva, MD, IMF @IMFNews, and @DavidMalpassWBG President @WorldBank on the sidelines of the #SpringMeetings 2023, in Washington DC, today.”

“As a priority for the #G20India Presidency, FM Smt. @nsitharaman said that there is a need to augment present global efforts, including those of the #G20 to address growing debt distress across the globe,” the ministry tweeted further.

During the discussion, Sitharaman also emphasised the need for debt transparency, information exchange, and clarity regarding the treatment of different debt situations on par, predictability of the process, and timeliness of the process.

On Tuesday, Sitaraman also engaged in a bilateral meeting with her US counterpart. Yellen lauded India’s leadership on the issue of reform of MDBs.

Yellen also added that the US seeks G20’s help in achieving reforms. “The G20 can bring strong political momentum to bear to make sure that the multilateral development banks accelerate their work on 21st-century global challenges as part of their effort to end extreme poverty and expand shared prosperity,” the top US official stated.

At the MDB Roundtable Yellen further said, “In the coming weeks, we will elect new leadership at the World Bank that can carry this work forward. I believe that Ajay Banga – U.S. nominee for President of the World Bank – is the right leader to take the baton from President Malpass and accelerate our work to evolve this institution.”

Union Finance Minister Nirmala Sitharaman on Sunday (local time) reached Washington to attend the 2023 Spring Meetings of the World Bank Group and International Monetary Fund and other G20 meetings.

She was received by Ambassador Taranjit Singh Sandhu. Sitharaman is on a week-long visit to the US. (ANI)

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FM meets UAE envoy, discusses bilateral ties

Ministry of Finance took to its official Twitter handle to inform about the meeting between Nirmala Sitharaman and UAE Embassy officials…reports Asian Lite News

Union Finance Minister Nirmala Sitharaman on Monday held a meeting with United Arab Emirates ambassador to India Abdulnasser Jamal Alshaali, Deputy Chief of UAE Mission Majid Alnekhailawi and Abdulaziz Alhashmi, head of the Political Section, UAE Embassy and discussed bilateral ties between the two nations.

Ministry of Finance took to its official Twitter handle to inform about the meeting between Nirmala Sitharaman and UAE Embassy officials.

Ministry of Finance tweeted, “Mr. Abdulnasser Jamal Alshaali, Ambassador of UAE to India, along with Mr Majid Alnekhailawi, Deputy Chief of UAE Mission & Mr. Abdulaziz Alhashmi, Head of Political Sectio, UAE Embassy, called on FM Smt @nsitharaman to discuss bilateral relations between India and UAE, today.”

On March 1, UAE’s Minister of Foreign Affairs and International Cooperation Sheikh Abdullah bin Zayed Al Nahyan arrived in India to participate in the G20 Foreign Ministers’ Meeting. Notably, India assumed the G20 Presidency on December 1.

Meanwhile, UAE’s Minister of State for International Cooperation Reem Ebrahim Al Hashimy participated in the eighth edition of the Raisina Dialogue in New Delhi. She attended the meeting along with a number of UAE ministers and officials.

According to the statement released by the UAE’s Minister of Foreign Affairs and International Cooperation, the participation of Reem Ebrahim Al Hashimy demonstrates the depth of the strategic relations that bind the two nations.

During the session entitled “A Region of Opportunities: From the Mediterranean to the Arabian Sea,” she focused on the UAE’s approach to building more sustainable and effective partnerships with other countries and its vision to use technology, science, and innovation to enhance these partnerships, which aim to benefit humanity.

According to the statement, Reem Ebrahim Al Hashimy said that UAE’s hosting of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28) to focus on finding solutions and new innovations to address global challenges. (ANI)

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Nirmala meets World Bank chief Malpass

She welcomed World Bank’s initiative to feature Lifestyle for Environment LiFE, during the Spring Meetings…reports Asian Lite News

Finance Minister Nirmala Sitharaman on Wednesday held a meeting with World Bank President David Malpass, where they discussed India’s G20 presidency and priorities, Capital Adequacy Frameworks, and addressed debt vulnerabilities.

The Finance Minister stressed that real evolution of the World Bank’s vision and mission needs sharpened focus on middle income countries that are home to more than 70 per cent of world’s poor.

She informed Malpass that climate finance is a focus area during India’s presidency and multilateral development banks (MDBs) can play a major role in incentivising private capital, de-risking instruments and providing greater concessional finance.

Sitharaman appreciated World Bank Group for the robust support it provided in facilitating India’s priorities during its G20 presidency for both the Sherpa and FinanceTrack.

She welcomed World Bank’s initiative to feature Lifestyle for Environment LiFE, during the Spring Meetings.

The Finance Minister emphasised India’s belief that the recommendations of the expert panel on the MDBs’ Capital Adequacy Frameworks can significantly unlock development financing.

She suggested to Malpass that World Bank must continue to strive towards achieving its twin goals and leverage its comparative advantage for achievement of the SDGs.

Malpass recently announced his decision to step down as World Bank chief in June, a year before the expiry of his term.

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Nirmala to meet Yellen, World Bank chief

The Finance Minister will be in the western country between October 11 and 16…reports Asian Lite News

Finance Minister Nirmala Sitharaman will be visiting the US on an official visit beginning October 11, to attend the annual meetings of the International Monetary Fund (IMF) and the World Bank, and also the meeting of the G20 Finance Ministers and Central Bank Governors (FMCBG).

In a high-level meeting, the Finance Minister will meet the US Treasury Secretary Janet Yellen and David Malpass, President, World Bank separately to discuss issues of mutual interest.

The Finance Minister will be in the western country between October 11 and 16.

Sitharaman will participate in bilateral meetings with several countries, including Japan, South Korea, Saudi Arabia, Australia, Bhutan, New Zealand, Egypt, Germany, Mauritius, UAE, Iran and Netherlands. One-on-one meetings with leaders and heads of the OECD, European Commission and UNDP are also scheduled.

Besides, interacting with business leaders and investors, she will also attend the meetings of the G20 Finance Ministers and Central Bank Governors.

“Union Minister for Finance and Corporate Affairs Nirmala Sitharaman will be travelling to the USA on an official visit beginning October 11, 2022. During her visit, Sitharaman will be attending the Annual Meetings of the International Monetary Fund (IMF) and the World Bank, the G20 Finance Ministers and Central Bank Governor (FMCBG) Meetings,” read a statement by the Ministry of Finance.

Union Minister will also take part in “India’s Economic Prospects and Role in the World Economy” at the Brookings Institution, a prominent non-profit public policy organisation based in Washington, DC. She will also talk on India’s unique Digital Public Goods (DPG) story and multiplier effects created in India through the interlinkages of ‘Technology, Finance and Governance at the School of Advanced International Studies (SAIS), John Hopkins University during the visit.

During the latter part of the visit, Sitharaman will attend roundtable meetings with USIBC and USISPF on themes to ‘Strengthen Investment and Innovation in India-US Corridor’ and “Investing in India’s Digital Revolution”.

“These meetings with leading business leaders and investors are aimed at highlighting India’s policy priorities, and deliberate on measures to facilitate foreign investment by showcasing India’s attractiveness as an investment destination,” the Ministry said.

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Sitharaman calls for ‘proactive collective efforts’ by G-20

Union Minister of Finance Nirmala Sitharaman. (File Photo: IANS)

The Finance Minister is holding meetings on the sidelines of the World Bank Group events, with counterparts from around the world and corporate leaders…reports Asian Lite News

Finance Minister Nirmala Sitharaman has called for “proactive collective efforts” by the G-20 group of the world’s top economies to deal with the current slowdown in the growth momentum of the global economy.

Addressing fellow ministers and central bank heads of the G-20 member countries, the minister attributed the slowdown to “prolonged inflation, supply chain disruption, volatility in energy markets and investor uncertainty”, according to a series of Twitter posts by the Ministry of Finance.

Sitharaman, who is in Washington DC for the Spring Meetings of the World Bank Group (which includes the International Monetary Fund), said G-20 “is well placed to catalyse international policy coordination to deal with macroeconomic consequences and called for proactive collective efforts towards protecting economies”, according to the Finance Ministry.

The 2022 April Spring Meetings are taking place amidst a significant slowdown in the global economy, whose recovery from the adverse effects of the Covid-19 pandemic was rudely halted by the Russian invasion of Ukraine and the economic upheaval it has caused.

The IMF estimates that the “global growth will slow down from an estimated 6.1 per cent in 2021 to 3.6 per cent in 2022 and 2023. These are 0.8 and 0.2 percentage points lower for 2022 and 2023 projections in the January World Economic Outlook Update. Beyond 2023, global growth is forecast to decline to about 3.3 per cent over the medium term. This projection is based on the assumption that the conflict will remain confined to Ukraine further sanctions on Russia exempt the energy sector (although the impact of European countries’ decisions to wean themselves off Russian energy and embargoes announced through March 31, 2022, are factored into the baseline), and the pandemic’s health and economic impacts abate over the course of 2022”.

India’s growth projections have also been cut by both the fund and the World Bank. The fund said India will grow by 8.2 per cent in 2022, down 0.8 percentage points from 9 per cent as projected in January, which in itself was down 0.5 percentage points form its previous projection. The World Bank has projected 8 per cent growth for the Indian economy in 2022 in a report released last week.

The Finance Minister is holding meetings on the sidelines of the World Bank Group events, with counterparts from around the world and corporate leaders.

Sitharaman and US commerce secretary Gina Raimondo discussed “ways to strengthen economic cooperation in the bilateral and global contexts”, the ministry said in a tweet. She also met counterparts from the Netherlands and Suriname.

The G20 Finance and Health Ministers gathered in Rome for a joint meeting. (Photo_Twitter@g20org) File Pic

The Finance Minister pitched India to the US semiconductor industry in a meeting with John Neuffer, president and CEO of the Semiconductor Industry Association. She informed Neuffer of the “initiatives & policies rolled out by the Government of India (GoI) to attract & support foreign investment in semiconductor industry, including development of sustainable semiconductor and display ecosystem with an outlay of $10 billion, in India”, the ministry said.

Neuffer was described as being “upbeat” about the initiatives taken by GoI to promote investment in Semiconductor ecosystem and appreciated India’s commitment to become a reliable player in the global supply chain.

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Sitharaman unveils new set of relief measures

Finance Minister Niramala Sitharaman has announced eight new relief measures to boost the economy, with a special focus on health and tourism, reports Asian Lite News

The Centre on Monday extended liquidity support to various stressed sectors of India Inc as well as micro credit borrowers and export oriented industries.

Accordingly, Finance Minister Nirmala Sitharaman announced eight relief measures worth Rs 6,28,993 crore.

These measures entail enhancement of existing relief schemes such as ECGLS and support for state governments.

Besides, a total of four new measures were announced to provide loans to micro credit borrowers as well as tourism industry.

Further, Sitharaman announced Rs 50,000 crore guaranteed loan for creation of medical infrastructure.

She said that ECLGS scheme will be enhanced by Rs 1.5 lakh crore. Furthermore, she announced a Rs 1.1 lakh crore loan guarantee scheme for Covid-affected sectors.

She said that first 5 lakh tourist visas will be issued free of charge. This step will be taken once the visa issuance start.

Apart from these the Atmanirbhar Bharat Rozgar Yojana has been extended till March 31, 2022 entailing government PF liability of employees and employers depending on the size of the organisation.

On exports, the minister announced support extended to National Export Insurance Account (NEIA) worth Rs 33,000 crore for project exports from India.

Similarly, support has been extended to ECGC (Export Credit Guarantee Corporation of India) worth Rs 88,000 crore for merchandise exports.

Additional funds worth Rs 19,041 crore was announced for Digital India scheme. Also, the tenure of large scale electronics manufacturing PLI scheme has been extended.

In addition, the Centre will come out with a new streamline policy for PPP and asset monetisation.

“Today’s announcement contained a mix of new schemes focussed on relief for the pandemic-affected sectors, extension of earlier schemes, as well a reiteration of recent announcements such as free food grains up to November 2021,” said Aditi Nayar, Chief Economist, ICRA.

“The new schemes announced for the pandemic-affected sectors include the extension of guarantees of around Rs 2.6 trillion, which will have a limited fiscal cost upfront, even as their success will hinge on offtake.”

According to Madhavi Arora, Lead Economist, Emkay Global Financial Services: “While the measures are welcome and target Covid-sensitive sectors , most of the fiscal support is still below the line and in the form of loan guarantees, and not direct stimulus.”

“Overall, amid various push and pull, there is a likelihood of fiscal slippage to the tune of around 0.5 per cent from the initially budgeted 6.8 per cent.”

Further, Suman Chowdhury, Chief Analytical Officer, Acuite Ratings & Research said: “The other significant measure from the government is a credit guarantee scheme for the MFI sector which has also been particularly impacted by the second wave of Covid.”

“Since the MFI sector has exposure to the informal sector whose businesses have been substantially affected by the pandemic, its collections have taken a hit in the current quarter.”

In addition, Aloke Bajpai, CEO & Director, ixigo said: “The announcement of free tourist visa to first 5 lakh tourists coming to India by 31st March 2022 is a welcome step. This move will surely boost the morale of travel and tourism sector and aid in faster recovery of inbound tourism. With vaccination drives gathering pace and resumption of activities we are optimistic normal international flights will resume operations soon.”

“We expect to see similar moves from other countries to attract foreign tourists once borders open.”

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