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) built around five pillars of Economy, Infrastructure, Systems, Vibrant Demography, and Demand.
An extensive set of reform and relief measures has been introduced as part of the programme that is helping boost equitable growth in post-Coronavirus India. Improved liberalisation, policy amendments, relaxed regulations, financial support, infrastructure investment, skill development, etc, are attracting larger counts of foreign investors to India to 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 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: Link
Atmanirbhar Bharat Abhiyan Part 2: Link
Atmanirbhar Bharat Abhiyan Part 3: Link
Atmanirbhar Bharat Abhiyan Part 4: Link
Atmanirbhar Bharat Abhiyan Part 5: 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
Self Reliant India Programme Stimulus Package 3.0
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 refer and 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