New Delhi: Finance Minister Nirmala Sitharaman on Wednesday (May 12, 2020) sought to clear the air around Prime Minister's call for making India self-reliant, saying it does not mean that India will look only inwards and become an "isolationist" country.
She said that the PM talked about a confident India which can rest on its strengths and also contribute to the globe. India has the capability and entrepreneurship to built capabilities and help the world, the Finance Minister added.
"Certainly, when he (Prime Minister) says 'Aatmanirbhar' Bharat, it is not to look inwards and cut India to become an isolationist country. It certainly talks about a confident India which can rest on its strengths and also be able to contribute to the globe, the way in which the Prime Minister rightly pointed out the production of PPEs (personal protective equipment), and masks and also ventilators have rapidly grown within these 40 days to an extent," the FM said while addressing reporters here about Rs 20 lakh crore economic package announced on Tuesday.
PM Modi had on Tuesday announced a Rs 20 lakh crore economic stimulus package on Tuesday and urged citizens to "buy local" to make India self-reliant.
His call was seen as a turn towards protectionism. FM Sitharaman also said the Rs 20 lakh crore economic package is to spur growth and build a self-reliant India. “The package was finalised after consulting various stakeholders,” she added.
In a televised address to the nation, Prime Minister Narendra Modi on Tuesday announced a massive new financial combined stimulus of Rs 20 lakh crore to revive the COVID-hit economy. Apart from the Reserve Bank of India (RBI) assistance, the government had last month announced a Rs 1.74 lakh crore to provide benefits to the poor, including cash transfers, Rs 50 lakh insurance cover and steps to ensure food security.
PM Modi also said there will be a fourth phase of the lockdown which will be very different from the earlier three phases. The third phase of the 54-day lockdown is scheduled to end on May 17.
PM Modi said that the financial package will be around 10 per cent of the GDP. The special economic package will have an emphasis on land, labour, liquidity and laws, and will be for "our labourers, farmers, honest taxpayers, MSMEs and cottage industry", the PM said.
PM Modi also hinted at big-ticket economic reforms in the coming days and said beginning Wednesday, Finance Minister Nirmala Sitharaman will announce details of the special economic package.
This package of Rs 20 lakh crore is expected to give a new impetus to the sagging economy. This was the PM's fifth address to the nation, and it came a day after he held a marathon meeting with chief ministers on the road ahead after May 17 when the 54-day nationwide lockdown is due to end.
PM Modi emphasised that bold reforms are needed to make the country self-reliant so that the impact of crisis such as COVID can be negated in the future that ranges from supply chain reforms for agriculture, rational tax system, simple and clear laws. He also pointed out that measures must be in place to attract investment and further strengthen 'Make in India'.
