June 28, 2021
Public health incentives will look to increase oxygen and bed supply, and improve diagnostic technology.
Extensions have been made in the PLI for Electronics Manufacturing, ECLGS, ANBRY, and PMGKY schemes.
Tourism, agriculture, microfinancing and public healthcare are four key sectors targeted by the wide-ranging incentives.
Public infrastructure is to be scaled up in 8 non-metropolitan cities and PPPs are to be rolled out promptly.
Finance Minister Smt Nirmala Sitharaman today announced three broad categories of relief measures for industries as well as individuals affected by COVID-19. The 17 measures with an allocation of US$ 84.67bn have been categorised as follows:
(i) Strengthening Public Health
A scheme with an outlay of US$ 3.12bn was announced in the interest of improving pediatric and emergency care. Other important activities like streamlining of oxygen supply, hospital beds, medical equipment availability, testing and diagnostics as well as telemedicine practice is also expected to be taken up on priority.
(ii) Impetus for growth and employment
Under this broad mandate, the tenure of the existing PLI for the Electronics Manufacturing sector has been extended to 2025-26 so as to include more beneficiaries. With regard to export promotion, the National Export Insurance Account (NEIA) has announced the release of additional credit spread across five years to support US$ 4.4bn worth of upcoming exports. The Export Credit Guarantee Corporation (ECGC) has also been expanded to include insurance coverage worth US$ 11bn .
On the Public Infrastructure front, announcements have been made to increase BharatNet allocation to US$ 8bn in order to include more villages and panchayats. A variety of schemes including DISCOM financing and infrastructure upgrading have been announced to increase power distribution. As speeding up the approval process for Public Private Partnerships (PPPs) in core infrastructure assets has been identified as a priority, relevant measures are being initiated to achieve the same.
In the interest of promoting agricultural growth, a package of US$ 10mn has been allocated to the North Eastern Regional Agricultural Marketing Corporation (NERAMAC). The allocation will provide an added boost to agricultural and horticultural development in the North Eastern states. Furthermore, the ICAR has developed 21 varieties of climate resistant crops including milles, quinoa, pigeon peas etc.
(iii) Economic Relief from the pandemic
A more comprehensive account on the 17 schemes can be accessed here. The targeted implementation of the above can further the positive growth trajectory exhibited by economic indicators since May 2021.