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Government Reliefs for Industries in India

Government Reliefs for Industries in India

As you are aware, the Indian economy continues to reel from the unprecedented  coronavirus pandemic, the Government of India announced a 20-trillion-rupee (US$266 billion) relief plan for Asia’s third-largest economy.

The P.M. of India has gone on record saying “The economic package will give a new momentum to India’s development journey and put India on the road to self-reliance. It is for the cottage, small and medium-scale industries.”

The special economic package, equivalent to around 10 per cent of India’s GDP, would be the main component of “Aatma Nirbhar Bharat” or self-reliant India.

Recent decisions by the Reserve Bank of India (RBI) and an earlier package announced at the start of the lockdown, combined with this package would add to a stimulus of about Rs 20 lakh crore.

The objective of the package is to focus on land, labour, liquidity and law; it will help small businesses, labourers, farmers, the middle class and cottage industries. It will focus on the well-being of migrant workers too.

The Indian government also intends to undertake reforms across eight sectors as part of the Prime Minister’s “Aatmanirbhar Bharat scheme” —a post pandemic economy plan that is aimed at helping the economy recover from the impact of Covid-19.

Important Changes were announced across sectors including coal, minerals, defence production, civil aviation, power distribution, social infrastructure, space, and atomic energy.

The proposed economic measures are focused on structural reforms for sectors which will be new horizons for growth and the intended sectors are Commercial Coal Mining, Minerals, Defence Production, Civil Aviation, Power Distribution Companies, Social Infrastructure, Space and Atomic Energy.

In addition to this, the Finance ministry of India has eased a few financial and regulatory compliances for individuals and companies as COVID-19 has created economic uncertainty. Relief includes extension of deadlines for compliances, such as income tax returns and GST returns.Customs has been labeled an essential service till June 30, 2020.

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