Modi announces package for land and labour, talks about Make in India 2.0 amid coronavirus crisis

KEY HIGHLIGHTS

• PM announces support for land, labour as part of Rs 20 lakh crore financial package to revive the economy
• Package would cover cottage industry, MSMEs, labourers, middle class and industries among others
• Modi signalled that focus on infrastructure development will continue to make India preferred destination for foreign companies
• Critics, however, took a jibe at Prime Minister's speech and talks of Make in India

Amid demand from industry to provide payroll support, Prime Minister Narendra Modi on Tuesday announced support for labour as part of Rs 20 lakh crore financial package to fight coronavirus and revive the economy.

While announcing the much-awaited package, he hinted that a lot of support would be directed towards lower-end of the society which include workers and farm sector.

He noted that the proposed package will focus on land, labour, liquidity and laws.

"It will cater to various sections including cottage industry, MSMEs, labourers, middle class, industries, among others," Modi said.

In his address to the nation, the Prime Minister indicated that government will focus on factors of production to ensure that costs of manufacturing comes down and India emerges as global production hub for companies.

Modi signalled that focus on infrastructure development will continue to make India preferred destination for foreign companies planning to shift their production from China. Policy experts said that Centre is working with states to ensure that land acquisition process is eased and made available to investors at concessional rates.

Prime Minister said that several bold reforms are needed to make the country self-reliant and negate the impact of coronavirus. These reforms include supply chain reforms for agriculture, rational tax system, simple and clear laws, capable human resources, and a strong financial system.

"These reforms will promote business, attract investment, and further strengthen Make in India," Modi said.

Critics, however, took a jibe at Prime Minister's speech and talks of Make in India saying the government had promised the same things when it launched its flagship scheme to promote India as a manufacturing hub in 2014.

"We had heard exactly the same things when Make in India was launched six years back. Today, common man was expecting Prime Minister to talk about their daily hardships but they were greatly disappointed," said a senior government functionary wishing not to be named.

Speaking days before the Lockdown 3.0 deadline ends on May 17, Modi said that the ongoing crisis had taught the importance of local manufacturing, local market and local supply chains.

"All our demands during the crisis were met locally," he noted.