From PM-CM Meet to Lockdown 4 Announcement

With India marching towards the end of 3rd lockdown, PM Modi talked with CM’s of states for the 5th time to discuss strategies for the coming time. He also addressed the nation and announced a ₹20 lakh crore stimulus, hinting at a gradual revival of economy during the Lockdown 4. Complete Coverage: Coronavirus

Crux of the Matter

PM Says Prime Minister along with Home Minister Amit Shah, Finance Minister Nirmala Sitharaman, Defence Minister Rajnath Singh, Health Minister Harsh Vardhan, and CMs of states discussed economic strategies and migrant labor issues across the country. PM Modi has specifically instructed states to keep rural India free from the pandemic. States have asked the Center for autonomy in decisions regarding lockdown.

Entire world feels India has been able to successfully protect itself from Covid-19, states played a major role in this. Wherever we have not followed social distancing, our problems have increased. Narendra Modi, Prime Minister, India

What Do States Say?

1. Kerala CM asked for more freedom in decision making

2. West Bengal CM questioned the purpose of lockdown while the economy and markets opened

3. Delhi CM requested PM to allow trade and commerce in non-containment zones in Delhi

4. Chhattisgarh CM requested the Central Government to give wages for 200 days under Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), so that affected people can get minimum wages and can have a livelihood

5. Punjab, Gujarat, and Telangana CMs in favour of extending lockdown with appropriate provisions

6. Tamil Nadu CM wanted strict travel restriction and ban on all modes of transportation till 31st May

7. Arunachal Pradesh CM assured the PM that northeast Indian states working closely as a team in this time of COVID-19 crisis to make the area infection-free.

PM’s Address to Nation PM Modi put a great focus on self-reliance. He believes that self-reliance is the key to success in the 21st Century. The PM has also requested citizens to be “vocal about locals” and buy products from local suppliers, which will strengthen local economies and markets. As mentioned by PM, five pillars for achieving self-reliance are economies with – potential for a quantum jump – infrastructure – a tech-driven system – demography – intelligence-driven supply system

PM also made it clear that lockdown phase four will be implemented in the country but it will be completely different for previous lockdowns.

Covid Stimulus of 10% of GDP! PM Modi announced the ₹20 lakh crores ($264 bn approx.) which is equal to 10% of India’s GDP. It will focus on 4 L’s: Land Labour Liquidity Law

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Breakdown of ₹20 lakh crores of Covid stimulus

The economic package will become the backbone for “Atma Nirbhar Bharat Abhiyan”. This package will enable MSME units a loan guarantee and wage support for MSMEs workers. Furthermore, migrant laborers will get relief and support. It will also spur local production through tax incentives. Tax cuts are likely to help in increasing spending. Huge relief for construction and housing schemes may also follow.

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Curiopedia

1. Japan has announced $2 billion in financial aid for its companies to shift production out of China. As of February, China was Japan’s biggest trade partner but the imports have slumped to half since global lockdowns began.

2. The Swadeshi Movement was a part of the Indian Independence movement. It was an economic strategy to boycott British products and revive Indian goods. The Swadeshi movement started after the partition of Bengal by the Viceroy of India, Lord Curzon in 1905. It was strongest in Bengal and was also called the Vandemataram movement. N Venkatram of Deloitte termed “Self Reliant India” described by PM Modi in his speech on 12th May, 2020, as Swadeshi 2.0 movement.

3. Kedai Sayur, which translates to “vegetable kiosk,” is an Indonesian startup that uses technology to facilitate the distribution of fresh vegetables to hawkers. The company announced that it has raised $1.3 million in 2019 in a seed round led by East Ventures. Founded in 2018, the young startup partners with farmers and hawkers for product sourcing and distribution.

Curated Coverage

1. Livemint – Most CMs ask PM Modi for autonomy to decide lockdown strategy post 17 May

2. NDTV – “Focus On Self-Reliance”: Full Text Of PM’s Speech Announcing Lockdown 4

3. Times of India – Lockdown 4.0 in new form, with new rules: PM Narendra Modi

4. Economic Times – Here’s all that happened in today’s PM-CMs meet

5. India Express – Economic package math: It’s 10% of GDP but about half is already factored in

6. Economic Times – PM Narendra Modi announces Rs 20 lakh crore special economic package

#Coronavirus