• Addressing the nation on 12^th May 2020, Hon’ble PM Narendra Modi announced a special economic package for an Aatmanirbhar or self-reliant India. ¹
• The comprehensive economic package, valued at INR 20 lakh crore, is equivalent to approximately 10% of India’s GDP. ¹

Sources: 1

• The economic package, taken together with earlier announcements by GoI during the COVID-19 outbreak and decisions taken by RBI to infuse liquidity within the economy, is worth INR 20 lakh crore. ¹
• The package is aimed at providing the much needed financial & policy support to the cottage industry and MSMEs in India. Under the aegis of the ‘Aatmanirbhar Bharat Abhiyaan’, GoI has also announced a host of bold reforms to attract investment, enhance the ease of doing business and strengthen the Make in India initiative. ¹

Sources: 1

• In his address to the nation, Hon’ble PM Narendra Modi outlined the following five pillars for building a self-reliant India: ¹
  1. Economy - which brings in quantum jump and not incremental change. The government’s goal is to make India a USD 5 Tn economy by 2025. ²  
  2. Infrastructure - which will become India’s new identity. To achieve the target of a USD 5 Tn economy, more than INR 100 lakh crore will be invested in infrastructure development in India over the next five years. 3
  3. Systems - based on 21st-century technology-driven arrangements.
  4. Vibrant Demography - which will prove to be a competitive advantage for a self-reliant India.
  5. Demand - utilized to its full capacity.

Sources: 1, 2, 3

• The economic package will focus on land, labour, liquidity and laws. ¹
• The package has been devised to give a thrust to local manufacturing, local markets and local supply-chains- thus propagating Hon’ble PM’s vision of ‘vocal for local’. The entire scheme focuses on providing impetus to the Make in India initiative and transforming local Indian companies into global brands. ¹

Sources: 1