Highlights of Economic Stimulus Package 4.0

The Finance Minister Smt Nirmala Sitaraman has announced the Economic Stimulus Package 4.0 on November 12, 2020.


As per the Finance Minister Nirmala Sitaraman, the Purchasing Managers’ Index (PMI) have rose to 58.9 in October 2020. This indicates a strong recovery of the economy from the COVID-19 crisis. Further, the energy consumption growth was higher in October, 2020.


Under the economic stimulus package 4.0, the finance minister has announced following incentives:

  1. Rs 1.46 trillion has to be provided for the Production Linked Incentive Scheme for 10 sectors.
  2. A Rs 6,940 crore scheme has been announced to promote manufacturing of Active Pharmaceutical Ingredients (API).
  3. Rs 18,000 crores has been allocated to the Pradhan Mantri Awas Yojana (Urban). It is expected to generate 7.8 million jobs.
  4. Rs 10,200 crores has been allocated for industrial infrastructure, green energy and procuring the defence equipments
  5. Rs 3,000 crores reserved for IDEAS Scheme.
  6. Rs 10,000 crores allocated to Pradhan Mantri Garib Kalyan Yojana.  Funds under it will be utilised for MGNREGA or for Pradhan Mantri Gram Sadak Yojana.
  7. Rs 65,000 crores were allocated for fertilizer subsidies.
  8. Rs 6,000 crores have been allocated National Investment and Infrastructure Funds.

Atma Nirbharat Bharat Rozgar Yojana

Apart from the stimulus package, a Atma Nirbharat Bharat Rozgar Yojana is also being launched. This scheme will incentivise the creation of new employment opportunities during the COVID-19 recovery phase.  Under the scheme employees covered under the EPFO registered establishments who were getting monthly wages less than Rs 15,000,  would be benefitted.

Other announcement

Apart from that, the government also announced relaxations in the income-tax rules. This would help in boosting the real estate sector. The new rules has pushed the sale of primary residential units of up to Rs 2 crore below the circle rates. Earlier, only 10 percent difference between the circle rate and the agreement value was allowed.

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