Atmanirbhar Bharat 3.0 Takes Overall Economic Support To 15% Of GDP: Nirmala Sitharaman

Economists said the new package included the March allocation as well as liquidity measures announced by the central bank worth Rs 6.5 lakh crore.

Atmanirbhar Bharat 3.0 Takes Overall Economic Support To 15% Of GDP: Nirmala Sitharaman

Finance Minister Nirmala Sitharaman on Thursday announced a third set of measures under the government's Atmanirbhar Bharat package, aimed at rescuing the economy out of a historic contraction caused by the coronavirus pandemic. The latest steps - including incentives on job creation and measures for the ailing economy's key real estate and infrastructure sectors - are estimated to cost the government Rs 2,65,080 crore. That takes the total monetary and fiscal support provided to the economy in its battle against COVID-19 to Rs  29,87,641 crore, a sum that the Finance Minister said is equivalent to roughly 15 per cent of the country's gross domestic product (GDP).

The total stimulus so far includes Reserve Bank of India measures worth Rs 12,71,200 crore. The Atmanirbhar Bharat packages 1.0 and 2.0 were estimated at Rs 1,102,650 crore and Rs 73,000 crore respectively.

The Atmanirbhar Bharat 3.0 stimulus measures included additional funding for realty developers and contractors, subsidies on fertilisers, incentives on employment generation and additional spending on rural jobs.

Newsbeep

"A number of indicators are showing that recovery is clearly happening in the economy... The strong recovery is based on the unrelenting reforms that the government has brought in a systematic manner,"  the Finance Minister said in a media briefing.

Atmanirbhar Bharat 3.0 Details

ItemAmount (In Crore Rupees)
Housing For All - PMAY-Urban18,000
Boost for rural employment10,000
R&D grant for COVID Suraksha - vaccine development900
Industrial infra, industrial incentives, domestic defence equipment10,200
Boost for project exports - support for EXIM Bank3,000
Boost for Atmanirbhar manufacturing production-linked incentives1,45,980
Support for agriculture - fertiliser subsidy65,000
Boost for infra - equity infusion in NIIF Debf PF6,000
Atmanirbhar Bharat Rozgar Yojana (overall Rs 36,000 crore)6,000
Total2,65,080
(Source: Ministry of Finance)

Summary Of Stimulus Measures Announced So Far

ItemAmount (In Crore Rupees)
Pradhan Mantri Garib Kalyan Package1,92,800
Atmanirbharat Bharat Abhiyaan 1.011,02,650
PMGKP Anna Yojana - extension of five months from July to November82,911
Atmanirbhar Bharat Abhiyaan 2.0 (October 12)73,000
Sub Total17,19,441
Atmanirbhar Bharat 3.02,65,080
RBI measures12,71,200
Total29,87,641
(Source: Ministry of Finance)

The latest package comes at a time when many economists have called for more stimulus measures to revive the economy, which is headed for its worst annual contraction in more than four decades, saying more needs to be done to create jobs and push demand.