NEW DELHI: The Centre is considering another round of stimulus which will be spent on healthcare measures to combat the pandemic, along with extending free rations for the poor and pumping in more money into income generating schemes. Besides, it is also likely to come up with incentive packages for a host of industries. Officials said the measures were being worked out and a political decision on their roll-out timing will be taken soon.
Industry bodies have been complaining that a lack of demand is stifling India’s economic recovery, with the country posting the largest contraction in any major economy for the April-June quarter at nearly 24 per cent.
“We have already announced stimulus in several tranches worth about Rs 21 lakh crore, but as the pandemic and its impact on the economy continues, we have to rework strategies and need more measures to boost demand and investment. These are in the works,” said top finance ministry officials.
Industries ranging from textiles, telecom gear, electric batteries, automobiles and food processing may get incentives for a five year period. The productivity linked incentives will be similar to those announced for the pharmaceuticals and electronics sectors recently.
Officials said to ramp up employment, spending would be increased on jobs schemes. MGNREGA scheme, which provides guaranteed work in rural areas, was topped up with an extra allocation of Rs 40,000 crore as part of an earlier stimulus program to bring the total to Rs 1 lakh crore. This figure will have to be raised as about half of the money allocated for the rural employment guarantee scheme had been spent by early-August. Officials said urban employment schemes have also been suggested by some experts and may be considered.
Similarly, the Union government had announced free rations for the poor till November and this is likely to be extended as the coronavirus cases mount and unemployment rates remain high. Budget for healthcare is also likely to go up as the government ramps up infrastructure and takes a call on buying Covid-19 vaccines. “India may or may not provide free vaccines to its entire population, but a call has to be taken on at least immunisation of critical workers and vulnerable
sections,” officials added.