Focus of India's Latest Rescue Package

Indian Government has announced plans to assist Small and Medium Enterprises as a part of their Rs. 20 lakh crore ($266 Billion) economic package. This economic package is nearly 10% equivalent to 10% of India's GDP.

Nirmala SItharaman, Finance Minister quoted certain measures which are announced in these few days with reference to the use and allocation of the package. Let's discuss them:-

1. FM Sitharaman quoted "The measures will boost growth and build a self-reliant India. She further added that "The intention is to invest in local brands and make them world-class. It's about being isolationist or looking inwards, it's about a confident and powerful India that contribute to the world.
2. This includes an emergency credit line of collateral-free loans worth $40 billion to safeguard jobs and reuse business activities in the wake of India's lockdown 4.0 to contain coronavirus.
3. To infuse the much-needed liquidity into India's power distribution firms, Small and Medium Enterprises, Non-Banking Financial Institutions, and Micro Finance FIrms, FM outlined a series of measures among other things. This included a key announcement to bail out over 2 lakh ailing SMEs and prohibiting global tenders for government procurements to help local businesses sell to govt. 
4. The countrywide lockdown which started from 25th March has had a huge economic impact, with millions of migrant labor and poorer Indians hit hardest. On 12th May, PM Modi directed that stay-at-home orders would be extended beyond 17th May with an all-new set of rules. FM Sitharaman informed media that the government aims to assist over 4.5 million businesses by October by providing credit guaranty to help them raise collateral-free loans from banks.
5. FM Sitharaman quoted "We have a responsibility towards the needy, the disabled, the poor and the migrant." She further informed that the government will provide $11.95 billion for power distribution companies.
6. Real estate firms will be able to claim relief from penalties for up to 6 months when the accomplishment of projects is delayed because of Covid-19.
7. In addition, FM has also included some demand-side measures. For instance, the rates of Tax Collected at Source (TCS) and Tax Deductible at Source (TDS) are to be cut by 25% for the remainder of the current FY. The due date to file income tax for FY 2020 has been extended to Nov 30, 2020.

India's total number of Covid-19 cases stands at 96,169 with 3,029 deaths and 36,823 recoveries from the infection so far. The rate of infection has boomed in the past week. India, a country of 1.3 billion people, has surpassed China in number of COVID Cases.