In his much awaited address to the nation on 12th may at 8.00 PM, Prime Minister Narendra Modi announced a ₹20-lakh-crore relief package to help revive an economy hit hard by the Covid-19 pandemic. At ₹20 lakh crore, the quantum of the relief package works out to about 10% of the GDP. However,the details of the package will be shared by Finance Minister Nirmala Sitharaman tomorrow.
This vision of India – turning crisis into opportunity- is going to prove equally effective for our resolve of self-reliant India. The great COVID stimulus package announced by the Prime Minister Modi’s 35-minute speech was dedicated to how the pandemic has presented an opportunity to India which it should use to become self-reliant. Since, the virus has destroyed the world. Crores of people around the world are facing a crisis.
PM Modi said, that the singular idea behind this relief package, as well as the larger economic philosophy going forward, is ‘self-reliance’. Speaking of an ‘Atma Nirbhar Bharat Abhiyan’ or a national movement to promote self-reliance, the PM said that the government’s efforts towards economic revival will focus on four nodal areas: land, labour, liquidity and laws. Building further on the theme of self-reliance, he appealed to the people to get ‘vocal about local’ — that is, to buy locally made products to promote Indian industry and entrepreneurship.
Even the standards of the stimulus package in developed nations like the US, Prime Minister Narendra Modi’s Rs 20 lakh crore package – this includes the Rs 4-4.5 lakh crore of liquidity boost by the RBI – is not just massive, it signals a sea-change in the way the country is to governed. There are, as yet, no details of the package, but Modi promised sweeping reforms to ensure, as he said, the 21st century belongs to India. We will be careful about corona, he said, we will wear masks, we will observe ‘do gaz ki doori’, but our lives can’t just be about corona.
The Prime Minister said that lockdown 4.0 will be different from the past three. He said new rules will be released before May 18. Addressing the nation for the fifth time since the coronavirus outbreak, he said that it will be different and will have new rules. “You will be informed about it before May 18,” PM Modi said. The Prime Minister also said scientists believe the coronavirus will be a part of our lives for a very long time, “but we can’t let our lives remain confined around corona”. “We will wear masks and maintain social distancing but we will not let it affect us.
PM Modi also underlined the country’s effort to limit the spread of the virus, saying “India has given a ray of hope to the world”. Talking about self-dependent, he said, “When India speaks of self-reliance, it does not advocate for a self-centered system. In India’s self-reliance there is a concern for the whole world’s happiness, cooperation & peace.” PM Modi also announced a special economic package worth Rs 20 lakh crore to keep the health of the country’s economy healthy.
Indians should become vocal for local products:
To strengthen local markets, PM Modi said that local suppliers have met ‘our demands’ and now Indians will have to be ‘vocal about local’ and buy products from them. “The pandemic has taught us the importance of local supply chains very well. The global brands we see today were once local, they grew after their countrymen supported them. From today, all Indians should become vocal for our local products,” he said.
The country that never produced a single N-95 mask or PPE kit made in India, he said, The N-95 masks were produced in small quantity in India. Today we are in a situation to produce 2 lakh PPE and 2 lakh N-95 masks daily. We were able to do this because India turned this crisis into an opportunity.
Markets will weigh the details over the next few days but, for now, Modi has shown he has the guts to take big decisions. With this announcement, the stock market will give a different shape starting from Wednesday and the analysts will start giving a great report on India’s GDP.
Corona will be part of our lives for long time :
PM Modi said that scientists say that corona will be a part of our lives for a very long time. “But we can’t let our lives remain confined around Corona. We will wear masks and maintain social distancing but we will not let it affect us, he said.
In Box: The PM further said that lockdown 4.0 will have new rules, and the details regarding those will be made public before May 18. The ongoing lockdown 3.0 ends on May 17.
Recalling those who have died battling the pandemic, the Prime Minister said that the crisis that has emerged due to COVID-19 is unprecedented, but in this battle, we not only need to protect ourselves but also have to keep moving forward, according to a statement issued by the Prime Minister’s Office.
The most pessimistic estimate is a 5% real contraction in growth; Modi’s package, then, seeks to overcome that and ensure there is a small positive growth in the year. As expert after expert has said, it is critical that the economy doesn’t stall/contract as reviving businesses – and livelihoods – after they have shut is very difficult.
Friends, we have been hearing since the last century that the 21st century belongs to India. He further said, when we look at these two periods from India’s perspective, it seems that the 21st century is the century for India. This is not our dream, rather a responsibility for all of us.
With the inspirational speech of Modi, the Industry is taking a positive note on it and the revolution is moving towards Swadeshi not Videshi. The reaction is on how the bank are going to disrurse the loan to the SME,MSME and large enterprises, where the collateral’s value has come down to all time low from 30% to 40% below the actual price, remains as a question.