Nirmala Sitharaman Press Conference Highlights: The Union Finance Minister listed 12 new measures on November 12 as a part of the stimulus package during the COVID-19 outbreak. The Centre announced another stimulus package worth Rs 2.65 lakh crore, as a part of Atmanirbhar Bharat 3.0. This amount includes the ProductionLinked Incentive (PLI) scheme announced on November 11. Sitharaman said the economy is seeing strong recovery, and COVID-19 active cases are declining. The Centre and Reserve Bank of India (RBI) have together provided total fiscal stimulus of Rs 29.87 lakh crore since the COVID-19 pandemic began. This amount is 15 percent of India's gross domestic product (GDP), Sitharaman said.
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Dinesh Khara, Chairman, SBI, on on FM Sitharaman's Atmanirbhar Bharat Package 3.0 announcement
“The latest round of stimulus package by the Government is a bouquet of measures that incentivizes job creation in the informal sector, expands the supply of loanable funds through enlargement of credit guarantee scheme to support stressed sectors and a strong push to real estate, with tax incentives for home buyers that could potentially unleash a price discovery in the real estate market. The Government also proposes to enlarge the rural employment scheme that could continue to support rural recovery. The support for project exports could potentially widen the risk-taking capabilities of EXIM Bank. Overall, these measures will ensure that we continue to take steps towards a sustained economic recovery.”
Manju Yagnik, VCP Nahar Group and Senior Vice President, NAREDCO on FM Sitharaman's announcement
"Finance MinisterNirmalaSitharaman'sstimulus measures in terms of income tax relief for buyers and developers is very timely and will further boost the housing demand in the country. The income tax relief of up to 20 per cent for homes costing up to ₹ 2 crore available till June 30, 2021 will bring in much needed fresh buying in the sector. This move to incentivize buyers will ensure the first-time home buyers and fence sitters to also enter the market resulting into good sales in next few quarters. The additional outlay underPMAYwill help the completion of stuck projects, create new jobs, and boost demand for raw materials."
Shishir Baijal, Chairman & Managing Director, Knight Frank India on FM Sitharaman's Atmanirbhar Bharat Package 3.0 announcement
“The prolonged COVID-19 crisis and anticipation for the vaccine has kept consumer demand on tenterhooks. However, the government and central bank measures since the pandemic outbreak have been encouraging and in the right direction to support industry and boost consumer demand. Today’s stimulus measures will aid job creation and infrastructure development in the country. Recognition of real estate as a core sector, creating ancillary industry demand and employment, and enhanced Pradhan Mantri Awas Yojana – Urban allocation, will boost the housing demand in the country. Besides, the increase in circle rate and transaction value threshold from 10% to 20% will remove a transaction hurdle and save tax thereby increasing the opportunity for unbridled property purchase activity.”
Niranjan Hiranandani President NAREDCO, Assocham on FM Sitharaman's economic stimulus package
“Finance MinisterNirmalaSitharaman’sannouncement, about additional funding of Rs. 18,000 crore for PMAwaasYojana-Urbanwill add to the sparkle this festive season. This is over and above the Rs 8,000 already allotted this year, and will translate into more homes for home seekers, more employment opportunities as also good business for suppliers and industries peripheral to real estate and construction.”
Nirmala Sitharaman Press Conference LIVE Updates:
Most banking stocks continued trading in the red in afternoon trade on November 12 even as the Finance MinisterNirmalaSitharamanannounced fresh stimulus measures.
Nifty Bank index was about 2 percent down around 1415 hours, with all stocks in the red. Shares ofKotakMahindraBank, Bank of Baroda,ICICIBank, State Bank of India,IndusIndBank and Axis Bank were down over 2 percent each.
Nirmala Sitharaman Press Conference LIVE Updates:
Stating that the economy is seeing strong recovery, and COVID-19 active cases are declining, the finance minister said, "Fertiliser consumption is going up significantly, an increased supply of fertilisers will ensure that forthcoming crop seasons will not be affected for want of adequate fertilisers."
Theminister noted that a 17.8 percent increase in fertiliser usage against actual usage of 571 lakh metric tonnes in 2019-20 has been recorded.
Nirmala Sitharaman Press Conference LIVE Updates:
The Centre and Reserve Bank of India (RBI) have together provided total fiscal stimulus of Rs 29.87 lakh crore since the COVID-19 pandemic began. This amount is 15 percent of India’s gross domestic product (GDP), Finance Minister Nirmala Sitharaman said.
Under Atmanirbhar Bharat 3.0, the fiscal stimulus isRs 2.65 lakh crore, which includes the PLI scheme annoucend on November 11.
Nirmala Sitharaman Press Conference LIVE Updates:
During the media briefing, the Union Finance Ministerhad referred to Moody's economic outlook for India.Moody’s Investors Service, on November 12, revised India’s Gross Domestic Product (GDP) forecast upwards for calendar year 2020 to -8.9 percent from the -9.6 percent contraction estimatedearlier.India’s GDP forecast for calendar year 2021 was similarly revised to 8.6 percent from 8.1 percent predicted earlier. The economy had contracted by about 23.9 percent in the April-June quarter and is earlier seen contracting more than 10 percent in FY2021. This was largely due to the impact of the nationwide lockdown imposed to curb the spread of thenovel coronavirus outbreak.
FM Nirmala Sitharaman Press Conference LIVE Updates:
The governmentannounced an additional outlay of Rs 18,000 crore for Pradhan Mantri Awas Yojana (Urban), which means this amount will be provided over and above the budget estimate which was mentioned in the Budget 2020-21.
The decision will help ground 12 lakh houses and complete 18 lakh houses, said the union minister during a press conference on November 12.
“A number of measures have been taken in the past several months for revival of the Housing and Real Estate Sector. These measures have contributed to fair recovery in this sector,” said Sitharaman.
FM Nirmala Sitharaman Press Conference LIVE Updates:
Here are 6 out of the 12 announcements made by Sitharaman:
> Rs 900 crore R&D grant for COVID-19 vaccine development, which will be given to The Department of Biotechnology.
> Rs 65,000 crore fertilizer subsidy will be provided to farmers. Increased supply of fertilisers at subsidised rates will help 140 million farmers.
> Rs 6,000 crore equity investment in debt platform of NIIF, which will help NIIF raise Rs 1.1 lakh crore by 2025 for financing infrastructure projects
> Additional outlay of Rs 10,000 crore for PM Garib Kalyan Yojana.
> Rs 3,000 crore boost to be given for project exports through assistance given by India to developing countries under IDEAS Scheme
> Rs 10,200 crore additional budget stimulus to be provided for capital and industrial expenditure on defence equipment, industrial infrastructure and green energy
FM Nirmala Sitharaman Press Conference LIVE Updates:
Here are 6 out of the 12 announcements made by Sitharaman:
> Atmanirbhar Bharat Rozgar Yojana toincentivisethe creation of new employment opportunities during the COVID-19 recovery phase
> The Emergency Credit Line Guarantee Scheme (ECLGS) for MSMEs, businesses, MUDRA borrowers and individuals (loans for business purposes), has been extended till March 31, 2021.
> Credit guarantee support scheme for health care sector and 26 sectors stressed due to COVID-19.
> Production Linked Incentive (PLI) worth Rs 1.46 lakh crore is being offered to 10 champion sectors. A total amount of nearly 1.5 lakh crore has been earmarked across sectors, for next five years.
> The differential between circle rate and agreement value in real estate income tax had been increased to 20 percent to boost housing sales. Income tax relief for first-time buyers, developers, on houses up to Rs 2 crore till June 30, 2021
> Additional outlay of Rs 18,000 crore for PM Awaas Yojana Urban.
Source: Ministry of Finance
FM Nirmala Sitharaman Press Conference LIVE Updates:
TheAtmanirbharBharatRozgarYojanais being launched toincentivisethe creation of new employment opportunities during the COVID-19 recovery phase, the FM said.
The new scheme will be in addition to Prime MinisterRozgarProtsahanYojana.
The beneficiaries will include any new employee joining theEPFOregistered establishment;EPFmembers drawing a monthly wage of less than Rs 15,000 who lost jobs during the pandemic and regained employment after October 1.
FM Nirmala Sitharaman Press Conference LIVE Updates:
Union Finance Minister Nirmala Sitharaman, on November 12, announced new stimulus measures as part of the ‘Atmanirbhar Bharat 3.0’ package. FM Sitharaman said the Centre would undertake Rs 6,000 crore equity infusion into the National Investment and Infrastructure Fund (NIIF) debt platform.
NIIF will also raise equity from private investors, the finance minister said. FM Sitharaman said the NIIF would have infrastructure project financing worth Rs 1.10 lakh crore by 2025.
FM Nirmala Sitharaman Press Conference LIVE Updates:
Govt announces Rs 900 crore R&D grant for COVID-19 vaccine development.
FM Nirmala Sitharaman Press Conference LIVE Updates:
Centre annoucnes additional Rs 3,000 crore will be released to EXIM bank for promotion of project exports through lines of credit under IDEAS scheme.
FM Nirmala Sitharaman Press Conference LIVE Updates:
Rs65,000 crore fertilizer subsidy will be provided to farmers.
FM Nirmala Sitharaman Press Conference LIVE Updates:
Additional outlay of Rs 10,000 crore for PM Garib Kalyan Rozgar Yojana in FY21.
Nirmala Sitharaman Press Conference LIVE Updates:
Govt to infuse Rs 6,000 crore of equity in debt platform of National Infrastructure Investment Fund (NIIF).which will help NIIF raise Rs 1.1 lakh crore by 2025 for financing infrastructure projects.
FM Nirmala Sitharaman Press Conference LIVE Updates:
Centre announces tax relief for developers and home buyers for houses up to Rs 2 crore.
FM Nirmala Sitharaman Press Conference LIVE Updates:
Performance security on contracts in the construction/infrastructure sector now 3 percent vs 5-10 percent; to be available for all dispute free projects. EMD will not be required for bid tenders and will be replaced by Bid Security Declaration. The relaxations will be applicable till December 31, 2021.
FM Nirmala Sitharaman Press Conference LIVE Updates:
Sitharaman said that the Indian economy is witnessing a strong recovery after a long and strictcoronavirus-enforced lockdown in the country. Sheoutlined various economic indicators, which show the presence of a strong pitch for recovery in the economy amid the ongoing COVID-19 pandemic.
Nirmala Sitharaman Press Conference LIVE Updates:
Will allocate additionalRs 18,000 crore over budget estimate towards PM Awaaz Yojana Urban, says FM.
Nirmala Sitharaman Press Conference LIVE Updates:
Govt launches credit guarantee support for 26 stressed sectors.
Nirmala Sitharaman Press Conference LIVE Updates:
ECLGS extended till March 31, 2021.Entities with outstanding credit of above Rs 50 crore and up to Rs 500 crore will be covered.
FM Nirmala Sitharaman Press Conference LIVE Updates:
The Atmanirbhar Bharat Rozgar Yojanawill be effective from October 1, 2020.EPFO registered establishments - if they take in new employees or those who lost jobs earlier - these employees will get some benefits.If new employees of requisite number are recruited from October 1, 2020 to June 30, 2021, the establishments will be covered for next two years.
FM Nirmala Sitharaman Press Conference LIVE Updates:
Atmanirbhar Bharat Rozgar Yojana will incentivise creation of new jobs, the FM said. New employees hired by EPFO-registered organisations to get benefits during the COVID-19 pandemic.
Nirmala Sitharaman Press Conference LIVE Updates:
FM announces Atmanirbhar Bharat Rozgar Yojana
Nirmala Sitharaman Press Conference LIVE Updates:
11 States have availed Rs 3,621 crore under interest-free loans towards capital expenditure. IT refunds have gone in a big way to people; 1.32 lakh crore refunds given.
Nirmala Sitharaman Press Conference LIVE Updates:
The FM said that under Emergency Credit Liquidity Guarantee Scheme (ECLGS), a total amount of Rs 2.05 lakh crore has been sanctioned to 61 lakh borrowers, out of which Rs 1.52 lakh crore has been disbursed. Rs 1.18 lakh crore has been sanctioned to discoms of 17 states/UTs.
Nirmala Sitharaman Press Conference LIVE Updates:
Credit boost has been given to 2.5 crore farmers through Kisan Credit Cards, Rs 1.4 lakh crore has been distributed to farmers. PradhanMantriMatsyaSampadaYojanaproposals from 21 states, worth nearly Rs 1,700 crore has been sanctioned.
FM Nirmala Sitharaman Press Conference LIVE Updates:
Nature of this rebound is a sustainable strong economic growth, the FM said. Speaking about Atmanirbhar Bharat 1.0, she said. 28 states/UTs have been brought under the national portability of ration cards, with effect from September 1. 26.2 lakh loan applications were received under the PM SVANidhi scheme for street vendors, and nearly 14 lakh loans were sanctioned.
FM Nirmala Sitharaman Press Conference LIVE Updates:
Bank credit growth is up 5.1%; markets are at a record high.RBI predicting a strong likelihood of economy returning to positive growth in Q3, says FM. She also noted that Moody’s hasreassessed India's economic outlook, making an upward revision to its GDP forecast.
Nirmala Sitharaman Press Conference LIVE Updates:
The Union Finance Minister gives an update on the economy, says the government will announcea few measures related to the stimulus.
Nirmala Sitharaman Press Conference LIVE Updates: Media briefing begins
FM Nirmala Sitharaman Press Conference LIVE Updates:
The media briefing will begin at 12.45 pm, CNBC-TV18 reported.
FM Nirmala Sitharaman Press Conference LIVE Updates:
The media briefing is expected to begin shortly
Follow our LIVE blog to check how markets react after the Centre's announcement
FM Nirmala Sitharaman Press Conference LIVE Updates:
The Central Government is considering a special scheme for exporters under which a premium subsidy of up to Rs 8,000 crore will be provided on export credit insurance, sources told Moneycontrol. This will help exporters get easier and cheaper credit.
A proposal to this effect is at the final stage and could be part of the next stimulus package, a source added.
FM Nirmala Sitharaman Press Conference LIVE Updates:
Thewage subsidy benefitislikely to be made available to firms with goods and services tax (GST) registration, sources told The Economic Times.
Discussions are on at the "highest levels of the government" and the final decision on the likely Rs 7 lakh crore (3.5 percent of GDP) package and wage subsidy benefit is yet to be reached, one source told the paper.
Nirmala Sitharaman Press Conference LIVE Updates:
As part of the package,the government may announce the reintroduction of the Pradhan Mantri Rojgar Protsahan Yojna in an expanded form. Under this scheme, the government may give a 10 percent subsidy on provident fund (PF) contribution for both new employees and employers.
Nirmala Sitharaman Press Conference LIVE Updates:
The Centre is likely to announce a mega pre-diwali stimulus package on November 12 afternoon. These could include measures aimed at sectors worst hit by the COVID-19 pandemic, as well as listing out of infrastructure projects which will be expedited with the aim of job creation.
Moneycontrol reported on November 11 that the stimulus packagewouldfocus on employment generationand incentives for stressed sectors. The stimulus package might be lower than the one announced in May, which was Rs 20 lakh crore.
Good morning! Welcome to Moneycontrol’s LIVE coverage of Union Finance Minister Nirmala Sitharaman’s press conference. The Ministry of Finance will likely announce other stimulus package, that will focus on employment creation and incentives for stressed sectors.
Stay tuned to this LIVE blog for the latest updates.
