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To boost economy, finance minister Sitharaman announces 8 new schemes with health, tourism in focus
As per Sitharaman's announcement, the government will expand federal guarantees on loans to businesses to $60.7 billion.
Finance Minister Nirmala Sitharaman on Monday announced eight new schemes to give a boost to the sectors reeling under the Covid-19 induced restrictions. Under the news schemes, the Centre extended a federal guarantee on bank loans to healthcare sector while waiving visa fees for 500,000 foreign tourists to perk up tourism.
As per Sitharaman's announcement, the government will expand federal guarantees on loans to businesses to $60.7 billion. For the health sector, Sitharaman announced a guarantee of $14.8 billion dollars on loans for medical infrastructure.
The government also extended benefits from the free foodgrain programme for unprivileged people till November. For this Sitahraman announced 938.7 billion rupees, bringing the total cost of the programme to more than $30.5 billion.
For tourism, Sitharaman said once the visa issuance for international travel is restarted, the first five lakh (500 thousand) tourists will be issued visas free of charge. "The scheme would be applicable till March 31, 2022, or till 5 lakh visas are issued, whichever is earlier. This would incentivise short-term tourists visiting India," she said during the press briefing.
The government will also provide working capital or personal loans to people in the tourism sector to discharge liabilities or restart businesses impacted due to Covid-19.
"The focus is on new lending, and not repayment of old loans," she also said, adding, "all borrowers (including defaulters upto 89 days) are eligible for the scheme."
The announcement comes as comes as India’s states start lifting restrictions amid a decline in coronavirus infections after the country suffered the unprecedented Covid-19 surge.
Local restrictions imposed during the last months of April and May, have severely hit economic activities such as retail, transport and construction while putting millions out of work.
(With agency inputs)
