Big push for housing, employment

Tribune News Service

New Delhi, November 12

The government on Thursday announced stimulus measures estimated at Rs 2.65 lakh crore in a bid to revive the economy.

Union Finance Minister Nirmala Sitharaman said the stimulus under Aatmanirbhar Bharat 3.0 would take the economy on a high growth path at a time when the macro-economic indicators were pointing towards recovery. The measures range from subsidy for job creation to relaxed tax norms for sale of houses.

India in technical recession: RBI

Mumbai: India has technically entered into a recession with a likely contraction in its GDP during the July-September period, according to a report by the RBI. The RBI’s Economic Activity Index estimates that the GDP growth for the second quarter of the current financial year was negative and the GDP contracted by 8.6 per cent during the quarter. “India has entered into a technical recession in the first half of 2020-21 for the first time in its history with 2020-21 expected to record the second successive quarter of GDP contraction,” it said. IANS

Moody’s revises forecast to minus 8.9%

Moody’s Investors Service on Thursday revised upwards its GDP forecast for India to -8.9 per cent contraction in 2020 from -9.6 per cent earlier, as the economy reflates after the lockdown, but said the recovery “is patchy”.

Another booster dose

• Rs1.46 lakh cr production-linked incentive for 10 sectors
• Rs18,000 cr for Prime Minister Awas Yojana (Urban)
• Rs10,200 cr for domestic defence equipment
• Rs900 cr grant for Covid vaccine research
• Rs65,000 cr subsidy for increased use of fertilisers
• Rs10,000 cr for PM Garib Kalyan Yojana
• Rs3,000 cr to Exim Bank for overseas projects

Under a new job creation scheme — the Aatmanirbhar Bharat Rozgar Yojana — the Centre will bear the PF contribution for new employees in the private sector. The offer will be valid for two years on new hires at less than Rs 15,000 per month.

Currently, the law restricts differential between circle rate and agreement value at 10 per cent. “This will help clear the inventory of housing units,” said Sitharaman. For the industry, the Finance Minister announced an extension of Rs 3 lakh crore Emergency Credit Line Guarantee Scheme till March 31, 2021, and additional credit of up to 20 per cent of outstanding as on February 29, 2020, to the healthcare segment and 26 stressed sectors.

The FM announced Rs 900 crore grant for Covid vaccine research to the Department of Biotechnology. She clarified that the grant did not cover the actual cost of vaccine.