The lockdown brought most of the economic activities to fallout. Many factories and businesses were shut down. Crores of people left unemployed when the government continued extending the lockdown.
The government announced Rs 20 lakh crore stimulus packages to spare the Indian economy battered by the lockdown. Out of which the fifth and final tranche concentrated more on the wellbeing of people, health, education and helping smaller developers to tide through an emergency as announced by finance minister Nirmala Sitharaman on 17th of May.
In the last tranche of the Atma Nirbhar Bharat package, focused on reforms and announced steps for MNREGA, health and education, for states, and for easing of business.
- Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA):
- Due to the impact of COVID, many people lost their jobs. The Government raised an employment guarantee scheme and announced Rs 40000 crore increases in allocation for MGNREGA to create many job opportunities.
- And also mentioned, urban people going to a rural place and starting working like before will be possible soon.
- A large number of livelihood assets including water and conservation assets will be created. And the rural economy is boosted by higher production.
- Education, the health of rural and urban people will be concentrated more:
- Public expenditure on health will be increased.
- India will be prepared for any kind of future pandemics.
- The government will block the infectious diseases hospital in all districts. And the Government implements a national digital health blueprint.
- Education is the future of any child and also the country’s future got affected very badly by this pandemic. Digital education will be launched immediately, which leads to technology-driven education in India.
- Through IBC related measures the last tranche focused on ease of doing business
- Government is preparing some strategies for the businesses to let them get back on their feet. They are not only concentrated on sector rivals but also on improving ease of doing business by releasing amendments.
- Government is excluding debt taken during COVID 19 by saying the debt as “default”.
- Improvements in rankings starting a business and insolvency resolution.
- There will be discrimination of companies act violations involving minor technical and procedural default.
- Majority of the compoundable offences section to be shifted internal adjudication mechanism
- Public sectors are open for private people to start their own business
- All the sectors are open to the private sector while public sectors enterprises play an important role in defined areas.
- Several enterprises in the strategic sector will be only one to four from now onwards to minimise wasteful administrative costs. And the rest will be either privatised or brought under holding companies.