PM Modi Announces “Rs 20 lakh Crore” economic package:- On May 12, 2020, Indian Prime Minister Narendra Modi announced an economic package of 20 Lack Crore to boost micro, small, and also medium enterprises to come out from this Covid-19 crisis. He had mentioned that this economic package will make ” Aatmnirbhar Bharat ” means self-reliant India.
This package will be lifting the Indian economy to fight the devastating spread of Covid-19. He said that the self-reliant mission of India stands on 5 stands which are-
Economy: which brings in quantum jump, not incremental change
Infrastructure: which represents modern India
System: Which is based on 21st-century technology-driven arrangements
Demography: Which is our source of energy for a self-reliant India
Demand: full utilization power of demand and also supply
PM Modi Announces “Rs 20 lakh Crore” economic package:- He said this package will be focused on land, labor, liquidity, and also laws. And also he announced that a brief introduction about the economic package will be given by Union Finance Minister Nirmala Sitharaman in the coming days, what it is, and also who will get the most benefits from this package.
So today, on Wednesday Finance Minister Nirmala Sitharamn had announced the brief about the economic package. She said that this package will help businesses, including micro, small, and also medium enterprises (MSMEs), to recover the economy from the impact of the Covid-19. Fm Nirmala Sitharaman announced the economic package in 6 steps.
Here are some points which are announced by Union FM Nirmala Sitharaman speech
- Those inside MSMEs will be set loans up to Rs 3 lakh without any guarantee. 45 lakh people will get direct benefits from this. And also even MSMEs company will be benefits with loans up to 2500 crores
- The Indian government will help to give loan without any guarantee to small and also medium enterprises
- EPF (employee provident fund) amount of employees who are earning less than 15 thousand monthly, will be payable by the Government of India by August 2020
- The Government of India reduced the EPF amount from 12% to 10% for MSMEs and also Government employees. But there has been no change for PSU employees.
- The non-banking finance company will get help from the economic package.
- This package will provide relief to construction companies manufacturing highways and also rail bridges. The builders will get more time to complete their projects.
- Tax collection at source (TCS) and also tax deduction at source (TDS) will be reduced by 25% from the current rate.
- MSMEs sector will be connected to the e-market, to get an immense boost in their business
- Tax assessment has extended to 31 December 2020
- As per the economic package, the definition of MSME has changed, now you have an investment of up to 1 crore and also turnover up to 5 crores, you will still be counted in MSMEs. Previously, this was done on an investment basis, and also now it will base on turnover.