Since the outbreak of Corona virus pandemic and the lockdown that followed, the government has taken several steps to mitigate the hardships of the people. In an exclusive interview with Organiser Representative Nilima Pathak, Anurag Thakur, Minister of State for Finance and Corporate Affairs explains how his government and party workers are educating people to ensure the welfare schemes benefit the masses
How will the Rs 50,000 crore nationwide ‘Garib Kalyan Rojgar Yojana’ (GKRY) launched from Bihar’s Khagaria district help boost the livelihood of jobless migrant workers during the COVID-19 crisis?
The ‘Garib Kalyan Rojgar Yojana’ announced by Prime Minister Narendra Modi will alleviate the hardships of people who have returned to their villages during the lockdown. Through this scheme, people will get various types of jobs and not face paucity of work. This yojana will run for 125 days across 116 districts to help the migrant workers by providing 25 different types of work. Also, talent mapping will be done, which means that the worker’s skills will be identified during this period. Furthermore, the government has announced a historic high of Rs 1 lakh crore allocation to MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act), which provides additional income support by generating 300 crore person-days of work, especially for migrants who have gone back to their villages. Our historic reforms in agriculture will boost farmers’ income throughout India and provide new avenues of growth. We are committed to ensuring that no worker or labourer is left without work.
The government is keen to rework on investments made by Chinese firms for 4G up-gradation by BSNL and MTNL. That apart, even the railways are in a process to cancel contracts in the Dedicated Freight Corridor (DFC). Is it feasible?
The government is following the mantra of ‘vocal for local and local to global’ to achieve ‘Atmanirbhar Bharat’ mission. We will continue to take steps to safeguard Indian citizens and our national interests. The decision to ban 59 mobile apps, which were prejudiced to the sovereignty and integrity of India, its defence and the security of the state and public order, is a decisive step in this direction. Importantly, over the last few years, India has emerged as a leading innovator in terms of technological advancements and a primary market in the digital space.
Prime Minister’s call for Atmanirbhar Bharat has injected self-respect and pride and the call for ‘vocal for local’ has made business houses to take note. How is the response so far?
Indians and India Inc have given an overwhelming and enthusiastic response to the Prime Minister’s clarion call towards Atmanirbhar Bharat. The economic reforms and relief measures announced recently to focus on both short-term survival and long-term revival of the Indian economy. The mood is upbeat and the Indian industry is ready to turn COVID-19 adversity into an opportunity for India. Two months ago, we imported PPE (Personal Protective Equipment) kits and facemasks. But today, we are the world’s second-largest manufacturer of these items and are ready to export these to the world. Indians have become ‘vocal for local’ and the economic reforms for self-reliance will act as a catalyst for productivity in various sectors. This will create new avenues of growth and widespread employment. A number of our schemes are already in the implementation stage. We are an action-oriented, people-centric government, which will take all possible measures to support business houses.
Is there a mantra for industries to become the flag-bearers in showcasing that India is an attractive investment destination?
The historic corporate tax rate cuts announced earlier, along with a slew of economic reforms under Atmanirbhar package will certainly attract investment and accelerate growth in various sectors such as MSMEs (Micro, Small and Medium Enterprises), agri-food processing, defence, space, coal and mining and education. India’s large-skilled workforce and domestic demand provide immense opportunities for business growth.
“Under PM Modi, India will continue to play a responsible and constructive role in global affairs. In recent years we have seen India’s stature rise, be it at the International Solar Alliance or recently at the virtual summit of South Asian Association for Regional Cooperation (SAARC) nations leaders”
Many European nations, as well as the United States and Japan, are in the process of moving their manufacturing hubs outside China to other Asian countries. How do we entice these big players to set up base here?
India is the only country in the world, which has demand, demography and digitalisation. This provides an immense scope of growth potential and an attractive destination for investment. Last year, we ranked 9th amongst the top Foreign Direct Investment (FDI) destinations in the world. We also reduced our corporate tax rate to 22 per cent and the tax rate to 15 per cent for manufacturing companies. These rates are amongst the most competitive tax rates amongst the Organisation for Economic Co-operation and Development (OECD) nations. With the inception and functioning of the Insolvency and Bankruptcy Code, the companies now have a set exit mechanism in case they want to sell their shares, which previously was a difficult proposition.
But aren’t we contradicting ourselves by talking about FDIs on the one hand and swadeshi on the other?
The Prime Minister has categorically stated that we will be participating in the global supply chains and will also be attracting FDI from nations around the world. We will continue to innovate, usher in new technology and cater to the needs of our citizens to become self-reliant. We will continue to look outward while enhancing our capabilities inwards. The government is also providing product-linked incentives to encourage companies to shift their manufacturing base to India. An example of this is the Production Linked Incentive Scheme announced last month wherein the benefit was extended from 4 per cent to 6 per cent on incremental sales of goods manufactured in India.
India’s brand position in the world in terms of goods produced is low. What measures are being taken to make it a manufacturing hub of good-quality products?
India is lauded in the entire world for its high-quality exports – whether it is spices, fisheries, jewellery, leather, footwear or IT services. We take pride in our quality and trustworthiness, and that makes us a reliable trade partner. The reforms we have undertaken will increase our industrial and manufacturing base, boost entrepreneurship and make us a manufacturing hub in the times to come.
“Indians and India Inc have given an overwhelming and enthusiastic response to the Prime Minister’s clarion call towards Atmanirbhar Bharat. The mood is upbeat and the Indian industry is ready to turn COVID-19 adversity into an opportunity for India. Two months ago, we imported PPE kits and facemasks. But today, we are the world’s second-largest manufacturer of these items and are ready to export these to the world. Indians have become ‘vocal for local’ and the economic reforms for self-reliance will act as a catalyst for productivity in various sectors”
Due to the virus crisis, foreign rating agencies have downgraded India’s growth outlook to negative for next year. Do we see a negative Gross Domestic Product (GDP) growth as predicted by analysts?
We need to understand that the COVID-19 crisis is not over yet. It is still evolving, and we are evaluating it every single day. We are only in the third month of this financial year.
“PM Modi has extended the Garib Kalyan Anna Yojana till November, wherein 80 crore people will get free ration for five more months. We have sanctioned around Rs 42,000 crore worth of loans under the Emergency Credit Line Guarantee Scheme and disbursed more than Rs 20,000 crore to the businesses, including MSMEs”
India has been elected as a non-permanent member of the United Nations Security Council for a two-year term. How will it change the dynamics of our foreign policy on the world stage?
Our near-unanimous selection is a testament to our standing in the global world order. India has been a significant contributor to the UN, its agencies and peacekeeping missions. Under Prime Minister Modi, India will continue to play a responsible and constructive role in global affairs. In recent years we have seen India’s stature rise, be it at the International Solar Alliance or recently at the virtual summit of South Asian Association for Regional Cooperation (SAARC) nations leaders.
The Congress Party has questioned the government time and again on the economic package during COVID-19 crisis, terming it as ‘too little’ and an ‘eyewash’. Your comment.
The Opposition has been a permanent naysayer and I am not surprised with their ill-informed comments about the package. Under the Pradhan Mantri Garib Kalyan Yojana, in the last three months, Rs 31,000 crore has been deposited in bank accounts of 20 crore low-income families and Rs 18,000 crore deposited in bank accounts of more than nine crore farmers. The Prime Minister has extended the Garib Kalyan Anna Yojana till November, wherein 80 crore people will get free ration for five more months. We have sanctioned around Rs 42,000 crore worth of loans under the Emergency Credit Line Guarantee Scheme and disbursed more than Rs 20,000 crore to the businesses, including MSMEs.
“The historic corporate tax rate cuts announced earlier, along with a slew of economic reforms under Atmanirbhar package will certainly attract investment and accelerate growth in various sectors such as MSMEs (Micro, Small and Medium Enterprises), agri-food processing, defence, space, coal and mining and education. India’s large-skilled workforce and domestic demand provide immense opportunities for business growth”
This certainly is not ‘too little’.
That’s not all. Until now, around seven crore people have already taken free gas cylinders under Ujjwala scheme, and a total of Rs 9,000 crore have been assigned to bank accounts as Direct Bank Transfer. The Central Government will contribute to both the employee and employers’ 12 per cent + 12 per cent for the next six months, which means extending further the Rs 2,500 crore benefit to people. While 12 lakh EPFO (Employees’ Provident Fund Organisation) holders got online withdrawal of advance, the NSAP (National Social Assistance Programme) beneficiaries received Rs1,405 crore in the first instalment and Rs 1,402 crore in the second instalment, thereby nearly achieving the Rs 3,000 crore target. The reduced 25 per cent TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) rates for non-salaried sections will give an additional Rs 50,000 crore liquidity. Also, income tax refunds to over 12 lakh salaried individuals to the tune of Rs 27,000 crores have already been frontloaded.
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