THE ATMANIRBHAR BHARAT PACKAGE- Is the big picture lost in details?

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The 5 part stimulus package that was announced beginning May 13, themed as "vocal for local" focused on 4 key areas i.e. land, law, labour and liquidity. It is roughly 10%  of the GDP, thus making it most substantial in the world but with the developed countries announcing a coronavirus relief package  of about 3-7% of their GDP, the efficiency and implication of the Indian package stands redoubtable and questionable .


FIRST TRANCHE- Rs.5.94 lakh cr.
This included Rs. 3 lakh crore collateral-free loans and Rs 50,000 crore equity infusion for MSMEs through Fund of Funds. Liquidity relief measures worth Rs 30,000 crore were also announced for NBFCs, HFCs etc. and Rs 90,000 crore for power distribution companies.

SECOND TRANCHE-Rs. 3.10 lakh cr.
The minister introduced ‘one nation one ration card’ to allow migrant workers to buy ration from any depot in the country. A special credit facility of Rs 5,000 crore was announced to support around 50 lakh street vendors who will have access to an initial Rs 10,000 working capital. The minister also said that close to Rs 2 lakh crore will be given to farmers through Kisan credit cards while 2.5 crore farmers, including fishermen and animal husbandry farmers, would be able to get institutional credit at a concessional rate. The government allowed states to fund the food and shelter facilities to migrant workers from the disaster response fund that would cost Rs 11,000 crore to the centre.

THIRD TRANCHE-Rs. 1.5 lakh cr.
The third tranche of the measures focused on the agriculture and allied sectors .Rs 4,000 crore for herbal cultivation, a Rs 15,000 crore Animal Husbandry Infrastructure Development Fund, Rs 500 crore for bee-keeping related infrastructure development were other packages announced by the minister.

FOURTH & FIFTH TRANCHE- Rs. 48,000 cr.
Mostly includes structural reforms. It comprised of reforms for sectors including coal, minerals, defence production, air space management, airports, MRO, distribution companies in UTs, space sector, and atomic energy.

RBI's liquidity infusion - 8 lakh cr.
A big chunk, in fact the largest, worth Rs 8.01 lakh crore of the economic package belonged to the various measures by the Reserve Bank of India.It's apparently a monetary package being basked upon as a fiscal package, RBI will reduce it's repo rate so that banks can borrow at a lesser rate and can further promote loans to borrowers at a eased rate.

RECYCLED SCHEMES- Rs. 1,92,800 cr.
The package recounts the primarily announced measures to save the lockdown-battered economy like Pradhan Mantri Garib Kisan Yojna .

Thus , so far totalling upto 20,97,053 cr.


Source: 
https://thewire.in/economy/modi-rs-20-lakh-crore-package-actual-spend
       
https://www.bloombergquint.com/coronavirus-outbreak/rs-20-lakh-crore-economic-package-with-little-government-spend
    
https://theprint.in/ilanomics/modi-govts-rs-20-lakh-crore-package-is-a-missed-opportunity-for-msme-credit-reform/421530/

Dhruv Rathi and Asset Yogi

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