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Addressing the nation a day after he held detailed discussions with top ministers and days before Lockdown 3 ends, the prime minister said the mega-package would be announced in the coming days by the finance minister. Nirmala Sitharaman even when he strongly identified the issue of “atmanirbhar Bharat (self-sufficient India)”, he said that it would not be a self-absorbed vision, but would rather make the country a part of global supply chains, seen as part of the overall strategy to attract foreign companies who plan to change China.
Modi said the package, which includes measures already announced by the Reserve Bank of India (RBI) and the finance ministry, would be equivalent to 10% of the country gross domestic product (GDP) The RBI had announced support equivalent to 3.2% of GDP and the Garib Kalyan Yojana presented by Sitharaman on March 26 represented 0.8% of GDP.
The prime minister’s speech included a promise that the new reforms would not ignore the migrant workforce and those whose livelihoods had been hit hard by Covid-19 and a call to be “vocal in favor of the local.”
There was a specific reference to “redi walas and thela walas (street vendors)”, part of the flow of migrants leaving the cities en masse due to the economic impact of the pandemic, along with references to the artisanal industry, MSMEs, the middle class , the industries. and other sectors.
The economy does not need incremental steps but a quantum leap: PM Modi
Describing the need for bold steps, the prime minister said the economy did not need incremental steps but a quantum leap, adding that this was one of the “five pillars” of a self-sufficient India. The others are infrastructure, a technology-driven system that fulfills the dreams of a modern India, vibrant demographics, and demand fueled by supply chains capable of meeting the needs of a growing nation. He added that this included a rational tax system.
Aware that the unprecedented blockade had affected people’s incomes, Modi sought to encourage the spirits by saying that while the threat was unparalleled, there was no room for weariness, defeat, or dispersal in the face of illness. He said that no goal was impossible and that India had the means and the will to set goals and achieve them.
Highlighting their contribution to the country and the suffering they have experienced, Modi said the package will also focus on empowering the poor, workers, migrants and others from the organized and unorganized sectors.
To put the general package in context, the government had announced a package equivalent to 4% of GDP during the global financial crisis in 2008-09. The Rs 20 lakh crore package compares to 10.7% of Germany’s GDP and more than the 9.7% of GDP package presented by France to address the impact of Covid-19 on their economies. Several experts had called for a big boost that the government appears to have accepted, except that it will be divided into several components.
Modi underscored the importance of strengthening all stakeholders in the supply chain to increase, as well as meet, demand and made a strong launch for local manufacturing and local products. He said the crisis had taught the country the importance of local manufacturing, the local market and local supply chains. “All of our demands during the crisis were met ‘locally’. Now, it’s time to talk about local products and help these local products go global, “said Modi when he called for a self-sufficient India.
The prime minister said that self-sufficiency would prepare India for stiff competition in the global supply chain, and that it was important for the country to win this competition. He said that the same topic had been taken into account when preparing the package. “Not only will it increase efficiency in various sectors, but it will also guarantee quality,” he added.
Modi said that the definition of self-sufficiency had undergone a change in the globalized world and clarified that when the country spoke of self-sufficiency, it was different from being self-centered. He said that the culture of India considered the world as a family, and that progress in India was part of and also contributed to progress throughout the world. He said that the world was confident that India had much to contribute to the development of all humanity.
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