In his address to the nation on May 12, 2020, the Prime Minister expressed India’s resolve to turn the COVID-19 pandemic crisis into an opportunity to strive for self-reliance. For this, the Government introduced the Self-reliant India Programme (Atmanirbhar Bharat Abhiyan) to be built around five pillars of Economy, Infrastructure, Systems, Vibrant Demography, and Demand.
An extensive set of reform and relief measures is being enforced as part of the programme that will help boost equitable growth in post-Coronavirus India. Improved liberalisation, policy amendments, relaxed regulations, financial support, infrastructure investment, skill development, etc, are expected to attract larger counts of foreign investors to India build a future-ready global economy.
Summary of Stimulus Measures Announced by the Government of India till date
|1.||Pradhan Mantri Garib Kalyan Package (PMGKP) +||1,928.00|
|2.||Atmanirbhar Bharat Abhiyaan 1.0||11,026.50|
|3.||PMGKP Anna Yojana – extension of 5 months from Jul – Nov||829.11|
|4.||Atmanirbhar Bharat Abhiyaan 2.0 (12th October)||730.00|
|5.||Atmanirbhar Bharat Abhiyaan 3.0||2,650.80|
|6.||RBI measures announced till 31st Oct 2020||12,712.00|
On May 12 2020, the Government of India introduced a stimulus package worth nearly Rs.21 trillion (US$277 billion), equivalent to around 10% of India’s GDP, to aid the people worst hit by the Coronavirus (COVID-19) pandemic. Built around five pillars of Economy, Infrastructure, Systems, Vibrant Demography, and Demand, the package was aimed at and opening up new avenues of trade, investment, and employment in the post-pandemic economy.
The building of a strong and resilient nation can only happen with the active cooperation of India’s global partners. To that end, the Central Government has set up an “Empowered Group of Secretaries (EGoS) and Project Development Cells (PDCs)” in all Ministries and Departments to attract fresh investments into India.
The stimulus package 1.0 was announced in five parts. For more details, please refer:
Atmanirbhar Bharat Abhiyan Part 1: Businesses, including MSMEs Link
Atmanirbhar Bharat Abhiyan Part 2: Poor, including migrants and farmers Link
Atmanirbhar Bharat Abhiyan Part 3: Agriculture Link
Atmanirbhar Bharat Abhiyan Part 4: New Horizons of Growth Link
Atmanirbhar Bharat Abhiyan Part 5: Government Reforms and Enablers Link
Announced on 12th Oct 2020, the second part of the package included measures worth Rs 730 billion to stimulate consumer spending in the economy in an effort to fight the slowdown due to COVID-19 pandemic following the lockdown.
For more details, please refer here
The third stimulus package, amounting to Rs. 2.65 trillion, announced by the Finance Minister on November 12, 2020, has been designed to increase employment opportunities, support multiple sectors through Production-Linked Incentives (PLIs) as well as extension of the Emergency Credit Line Guarantee Scheme (ECLGS) to non-MSMEs as well.
For more details, please click here.
PLI Schemes are a cornerstone of the Government’s push for achieving a Self-Reliant India (Atmanirbhar Bharat).The objective is to make domestic manufacturing globally competitive and to create global champions in manufacturing. The scheme provides an incentive of 4% to 6% on incremental sales (over base year) of goods manufactured in India and covered under target segments, to eligible companies, for a period of five years subsequent to the base year.
In March 2020, the cabinet approved Production Linked Incentive (PLI) Schemes in the following sectors:
The PLI Scheme for Large Scale Electronics Manufacturing (mobile phone and specified electronic components) was notified on 1 April, 2020 (Link). 16 applications from global and domestic mobile phone and electronic components manufacturing companies have been approved. The scheme is expected to lead to total production worth Rs. 11.5 trillion, and create 300,000 direct jobs, over the next five years. The companies approved under the PLI Scheme have made investments of approximately Rs. 30 billion, since 1 April 2020.
The Department of Pharmaceuticals issued detailed guidelines for the PLI Schemes for Key Starting Materials, Drug Intermediates and Active Pharmaceutical Ingredients; and Medical Devices on 27 July 2020, and the Revised Guidelines on 29 October 2020.
PLI Scheme for Key Starting Materials, Drug Intermediates and Active Pharmaceutical Ingredients: In the first round, 215 applications made by 83 pharmaceutical manufacturers were received of which 42 applications with committed investment of Rs. 43.47 billion and expected employment generation of around 8,792 persons were approved. Since a few slots remained unfilled for certain products, applications were invited again, and in the second round, further 24 applications were received. In the 9th Meeting of the Empowered Committee held on 25 November 2021, the applications of 8 companies were approved bringing the total approvals to 50, with committed investment of Rs 44.98 billion and employment generation of about 10,743. More details. On 27th January 2022, the ministry issued an invitation for applications for vacant slots (10 APIs), with an extended timeline for filling of application upto 31 March 2022.
Under the PLI Scheme for Medical Devices, 28 applications were received from 23 applicants in the first round. Out of these, 13 applications with committed investment of Rs.7.99 billion were approved with expected employment generation of around 3,812 persons. Since a few slots remained unfilled for certain products, applications were invited again, and a total 14 applications were received. In the 9th Meeting of the Empowered Committee held on 25 November 2021, applications of 8 companies have been approved, bringing the total approved applications to 21, with committed investment of Rs 10.59 billion and employment generation of about 6,411. More details .
Further, under the Atmanirbhar Bharat 3.0 stimulus package, announced in November 2020, the Government has included ten more Champion Sectors for coverage under the PLI Scheme to boost the global competitiveness of domestic manufacturing.
|Sector||Estimated Expenditure on
new PLI Schemes (Rs. billion)
|Advance Chemistry Cell Battery||181.00|
|Automobiles & Auto Components||570.42|
|Telecom & Networking Products||121.95|
|High Efficiency Solar PV Modules||45.00|
|White Goods (ACs & LED)||62.38|
PLI Scheme for an additional sector, Drones and Drone Components, was approved by the Union Cabinet in September 2021.
The above PLI Schemes have been already been approved/operationalised by the Government of India, as per details below:
As per the press release dated 14 October 2021 by Ministry of Communications, a total of 31 companies comprising 16 MSMEs and 15 Non-MSMEs (8 domestic and 7 global companies), received approval under the Scheme. The scheme is expected to result in Incremental production of around Rs. 1.82 trillion and attract investment of around Rs. 33.45 billion in the sector over 4 years, boost to local R&D and create additional employment for more than 40,000 people. More details.
With the objective to build a strong ecosystem for 5G, the guidelines for the Scheme have been amended with effect from 1st April 2022 to introduce Design- led Manufacturing with additional 1% incentive. The extended last date for submission of applications under the amended scheme is 25th August 2022. More details
The Minister of Commerce & Industry has said that there has been a very positive industry feedback about the various the PLI schemes in various sectors, and that these schemes have induced post-Covid industrial and economic recovery.
Ministry of Electronics and Information technology has announced the Design Linked Incentive (DLI) Scheme in December 2021, to enable the domestic industry involved in semiconductor design, to not only move up in value-chain but also strengthen the semiconductor chip design ecosystem in the country. CDAC is responsible for implementation of the DLI Scheme as Nodal Agency.
The scheme has three components – Chip Design infrastructure support, Product Design Linked Incentive and Deployment Linked Incentive,adopting a graded and pre-emptive approach towards achieving import substitution & value addition in strategic & societal sectors. More details
The Union of Cabinet of India has set up the Empowered Group of Secretaries (EGoS) to provide investment support and facilitation to global investors. The Empowered Group will also coordinate with various departments and ministries to ensure timely clearances. For more details, click here.
Project Development Cells (PDCs) in various ministries and departments of state and central governments, to develop investible projects with complete Detailed Project Reports including details of land which will be in turn picked by various investors. PDCs will also identify various issues that need to be settled to attract investments. These issues will be in turn put up to EGoS for further action. For more details, click here.
‘Ease of Doing Business’ reforms
Department for Promotion of Industry and Internal Trade (DPIIT), since 2014, has been releasing Business Reform Action Plan (BRAP) for steering business reforms to create an investor-friendly ecosystem across the country. So far 4 editions of the assessment of States/UTs have been released, and the latest edition Business Reforms Action Plan (BRAP), 2020 was released by the Minister of Finance on 30th June 2022. BRAP 2020 includes 301 reform points that cover 15 business regulatory areas such as Access to Information, Single Window System, Labour, Environment, Sectoral Reforms and other reforms spanning across the lifecycle of a typical business. More details
Also, as part of the Self Reliant India package, the Government had announced a number of measures to enhance ease-of-doing-business. Several Bills were passed during the Parliament session in September 2020 in this regard.
Corporate Law measures to boost Measures for Ease of Doing Business
For more details on Ease of Doing Business reforms, please refer here:
(replacing the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2020, introduced in response to the Covid-19 pandemic, which had created uncertainty and stress for businesses for reasons beyond their control.)
In addition, in May 2020 the Government had raised the threshold for initiating insolvency proceedings to Rs 10 million (from the present threshold of Rs 100,000) to protect MSMEs from an adverse fallout of the pandemic and lockdown. A special insolvency framework for MSMEs is under preparation, to be notified under section 240A of the IBC.
The Government has launched the DGFT ‘Trade Facilitation’ Mobile App, for promoting ease of doing business and providing quick access of information to importers/exporters. More information.
With an aim to further improve ease of doing business, on 28 July 2021, the Government launched the Secured Logistics Document Exchange along with a Calculator for Green House Gas Emissions. The digital initiative is expected to further improve ease of doing business through improved logistics efficiency, reduced logistics cost, and promoting multi-modality and sustainability. More information
Setting up of an Investment Clearance Cell (ICC) was announced in the Budget 2020-21 with the objective of making India self reliant and enhancing ease of doing buisness. The Ministry of Commerce and Industry launched the ICC / National Single Window System for Investors and Businesses (www.nsws.gov.in) on 22 September 2021 to provide ‘End to End’ facilitation, and bring transparency, accountability & responsiveness in the ecosystem. Currently, approvals of 32 Ministries/ Departments of the Central Government, and Single Window Systems of 14 States and 1 Union Territory have been on-boarded on the NSWS Portal. More details
Launching the ‘Ease of Logistics’ portal on 27 September 2021, the Minister for Commerce and Industry said it will bring in transparency and further facilitate Ease of Doing Business.
A big exercise is being carried out by Central Ministries & States/UTs to reduce compliance burden and the aim of this exercise is to simplify, decriminalize & remove redundant laws. More than 22,000 compliances have been reduced by Union Ministries, States & UTs so far under the initiative and about 13,000 compliances simplified while more than 1,200 processes have been digitized. Further, that during last fee years 103 offences have been decriminalized and 327 redundant provisions/laws removed. More details.
During the Budget Speech on 1 February 2021, the Finance Minister announced the policy of strategic disinvestment of public sector enterprises – providing a clear roadmap for disinvestment in all non-strategic and strategic sectors.
Further, the Finance Minister also stated that Monetizing operating public infrastructure assets is a very important financing option for new infrastructure construction.
On 23 August 2021, the Finance Minister launched the ‘National Monetisation Pipeline (NMP Volumes 1 & 2)’, developed by NITI Aayog, in consultation with infrastructure line ministries. NMP estimates aggregate monetisation potential of Rs 6.0 trillion through core assets of the Central Government, over a four-year period, from FY 2022 to FY 2025. More details
On 8 October 2021, the Government of India approved the sale of 100% equity shareholding of Government of India in Air India (along with equity shareholding of Air India in AIXL and AISATS) to Talace Pvt Ltd, a wholly owned subsidiary of M/s Tata Sons Pvt. Ltd. More details.
In May 2022, the government of India has sold 3.5% stake in Life Insurance Corporation (LIC), through IPO route, to raise a total of Rs 205.57 billion from primary investors. The issue was subscribed nearly 3 times on the last day of bidding. The Minority Stake sale was facilitated through amendment of FDI policy. Link
On 4 July 2022, Government announced another successful completion of strategic disinvestment of Neelachal Ispat Nigam Limited at an enterprise valuation of Rs. 121 billion.
The strategic transfer of ownership of Air India has since been completed in January 2022. Further, as announced by the Finance Minister during the Budget 2022-23 speech on 1 February 2022, a strategic partner for Neelanchal Ispat Nigam Limited has been selected, and public issue of LIC Ltd. is expected shortly.
On 9 March 2022, the Union Cabinet approved the setting up of National Land Monetization Corporation (NLMC) as a Special Purpose Vehicle (SPV) for undertaking surplus land monetization. NLMC will undertake monetization of surplus land and building assets of Central Public Sector Enterprises (CPSEs) and other Government agencies. More details
Transactions worth Rs. 1 trillion have been completed under the National Monetisation Pipeline (NMP) in FY 2021-22, surpassing the programme’s first-year target of Rs. 880 billion, Niti Aayog CEO Amitabh Kant said on Tuesday. The sectors which contributed in a big way to the asset monetisation include roads, power and mining of coal and minerals.