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Amid the global crisis that COVID-19 has posed, the economy is under unprecedented stress. As per the reports of the United Nations, the GDP growth rate of India is projected to be as low as 1.2 % for the financial year 2020-21. The rate of unemployment in the country due to the pandemic spiked up to 27.11% and the industrial production in the month of march declined by 16.7%. In an attempt to stabilize the Indian economy alongside safeguarding the interests of the needy, the Minister of Finance, Nirmala Sitaraman laid down the plan for Atmanirbhar Bharat Abhiyan or Self Reliant India movement (“Atmanirbhar Bharat Scheme”). The detailed breakup of the Atmanirbhar Bharat Scheme came a day after Prime Minister Narendra Modi announced a social and economic comprehensive package of INR 20 lakh crore to curb the current economic situation of the nation. This package will cater the needs of various sections including but not limited to cottage industry, MSME’s, laborers, industries etc. The 5 pillars of the Atmanirbhar Bharat Scheme will be Economy, Infrastructure, System, Vibrant Demography and Demand. These reforms are efforts to make the nation self-reliance and independent. Some of the key relaxations and benefits announced in the speech of the Finance Minister are as follows:
1. Pradhan Mantri Garib Kalyan Package This package is introduced to provide relief package for the poor to help them fight the global crises caused due to COVID-19. The reliefs provided are as follows:
2. Measures by Reserve Bank of India The Reserve Bank of India (“RBI”) will implement the following measures to help in increasing the cash liquidity in the market:
3. Measures for Businesses including MSME’s The Government along with the benefits to the business institutions and MSME have, have decided to revise the definition of MSME by changing the investment limits and introduced additional criteria of turnover. The revised definition would allow a broad coverage and benefits to more number of industries. Some of the benefits are as follows:
4. EPF Support for Business & Workers The Government has provided certain relaxation to both the employer as well as the employee, the relaxations are as follows:
5. Relief to Contractors The Government has taken certain steps to provide the contractors with extended timelines and better cash liquidity, the reliefs are as follows:
6. Tax related Measures The Government has decided to release the tax refunds so that the citizens can have more cash liquidity in hand and has also provided extended timelines for certain filings and other reliefs. The reliefs provided are as follows:
7. Measures related to Companies The Government has provided certain relaxation to the companies with respect to the compliances, the relaxations are as follows:
8. Measures related to NBFCs/HFCs/MFIs The Government has suggested certain schemes for NBFCs/HFCs/MFIs. The scheme includes the following: