Kick-Starting the Economy

AatmanirbharBharat and the 20 lakh crore policy unfolds like a 5-day test cricket match, and before it could generate further confusion in our minds, let's summarise the first day:  All the 15 steps analyzed carefully will help us understand that they don’t require the government to spend one extra rupee. There has been no indication of the printing of further money or anything similarly reckless. The government aims to increase money in the hands of micro, small, and medium scale industries. The opening session is always the safe side of the test match. Similarly, these sessions focus on deferrals of tax returns filing, tax refunds, and return the money owed to MSME’S. This announcement primarily puts money in the hands of people.

There were four L’s(land, labor, liquidity, and law)  listed by the respected Prime Minister of the Nation. Day 1 primarily focused on liquidity. Making it evident that the other days would focus on laws, land, and labor.

The five pillars (economy, systems built on technology, demography, demand, infrastructure).The most important pillar is infrastructure it would pen up possibilities of job creation, liquidity, and demand.

Another aspect that must be taken into consideration is the weather. India is entering its monsoon season where the trade generally seems to be a dull one. It’s important to monitor the benefits of these schemes and their accessibility during these times. The Rs 20,000 Cr partially guaranteed subordinated debt program and the Rs 50,000 Cr fund of funds scheme is definitely a boost to the MSME’s but the finer details need to be paid attention to.

However, some of the left economists did expect some big economic packages but one doesn’t want a government to spend recklessly. It’s important for the government to hold its nerve.