Page 411 - ES 2020-21_Volume-1-2 [28-01-21]

38 Economic Survey 2020-21 Volume 2

1.49 India’s response has been unique in recognising that the pandemic would have long-term
disruptive effects on the productive capacity. The Atmanirbhar Bharat Mission was, accordingly,
a composite package announced with welfare measures to address the short-term distress of
individuals and firms; and structural reforms to alleviate the long-term distress on the economy.
With gradual unlocking of the economy, the focus of the stimulus measures shifted towards
investment boosting and consumption revival measures like Production Linked Incentives,
enhancing capital expenditure and investments in infrastructure sector. The nuanced adaptations
in policy as per the requirements of the pandemic was based on continuous dialogue and
coordination between the Centre, States and Local Governments. The overall policy response,
therefore, is aimed at making the Indian economy more resilient and flexible to deal with the
opportunities and problems of the post-COVID world (Table 1).

Table 1: Policy Package in India to Combat COVID-19
Measures Nature Policy Tools
• School closure
• Complete Nation-wide lock-down for 21
days
• Travel bans/restrictions
• Closure of public places/cancellation of
• Containment and Closure public events
Containment Policy
measures • Curtailment of non-essential economic
• Transmission prevention activities
• Risk profiling of districts into Red Zones
(hot spots), Orange and Green Zones
• Social distancing norms
• Mandatory use of masks

• Emergency health fund (INR 150 billion)
• Pradhan Mantri Garib Kalyan Yojana -
Financial assistance and food security
• Increment in daily wage under MGNREGS
• Garib Kalyan Rojgar Abhiyaan –
livelihood creation in rural areas
• Health • Tax & contribution policy changes
• Welfare
Fiscal Policy • Tax Measures • Support to States, linking borrowings to
Measures Reforms
• Demand push
• Investment push Aatma Nirbhar Bharat Package 1
• Emergency Credit Line Guarantee
Scheme (ECLGS) for MSMEs
• Subordinate Debt for Stressed MSMEs
and Equity Infusion through Fund of
Funds for MSME