Lockdown Coronavirus. Yesterday our PM said that nearly 20 Lakh Crores will be invested to change the system in India. Today Our Finance Minister Nirmala Setharaman has announced information for 13 Lakh Crores.
Companies will benefit?
Companies will face difficulties?
Will this Change India to be self Dependent?
We will answer these questions in this post.
Beloved Tamil People. Greetings from Tamil Pokkisham.
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So Our Pm spoke about 4 L’s. Land, Labour, Liquidity and Law.
What kind of Law could it be?
Will they declare 12 hr Work law?
In 1929, America faced the Great Recession. But after that America started to recover. The workers during that time worked for 12 hours. This situation has come to India and the world. So the Law may be changed. But that info didn’t come in this announcement.
This announcement was based on only Liquidity. It was not about Labour, Land and Law.
Liquidity. The govt will try to give many chances for people to receive money. It may be debts or Allowance. They may tell us not to pay our Income tax. They may reduce the interest of Loans. They will do many changes.
By doing this can they bring back the Liquidity in India and the world?
They can bring in a small amount of Liquidity. Let’s discuss the pros and Cons now. Indian govt has announced a relief fund of 20 Lakh Crore rupees. Only 13 Lakh Crore rupees accounting has been shown to us. The remaining 7 Lakh Crore rupees accounting may come within three days.
This 7 Lakh Crore Rupees will contain Farming, Export and Import and allowance for MNC’s.
This proclamation has been based on small-medium Enterprises. We are discussing the Pros now later we will discuss Cons.
Is it enough to help only small-medium Enterprises and Companies?
It is very important now. In India alone, nearly 12 Crore People are involved in small-medium Enterprises. Nearly 28% of our GDP is Small-Medium enterprises. So we have to give importance to these enterprises.
Did the Proclamation contain only Small-Medium Enterprises?
A total of 18 Notifications came. The six for Small-Medium enterprises. Two for Employee Provident fund. Two for Non-Banking Financial companies. Two for MFI. One for Contractors. Three tax-related. One to Real estate. So a total of 18 Notifications.
Within the Six notifications for Small-Medium Enterprises. The important notification is to identify which is Small and Medium enterprises. They have divided then into Categories.
Before Coronavirus, if you want to start an enterprise you must buy many types of equipment. So if we have invested 25 Lakhs rupees they are called Micro Company. But now they have increased the amount to 1 crore.
Next comes Small Enterprises, first it was 5 Crore but now it is 10 Crores. Medium Enterprises have been increased to 20 Crore rupees.
What are the Pros?
Tax may be reduced. Liquidity whether they get loans or letting their enterprises in Stock Market there are so many pros. Nearly 3 Lakh Crore rupees will be given as debt to MSME industries. They will not need any witness. Govt is giving it as a guaranteed Loan. So banks and companies can lend loans. A lot of industries are suffering now. This will be a boost to these industries. They have not yet clearly declared which companies will be receiving this fund and the interest rate in unknow. This is a demerit.
Will it be useful for the industries which need it most or will the money reach the big companies.
So Speaking of Corporates nearly 200 crores for infrastructure projects tenders will not be given to foreign companies. This will be the base for Self Dependent. When 200 crore projects have been initiated the involvement of Foreign companies is unavoidable.
How will India overcome this task?
This may be a huge task.
So the 3 Lakh Crore rupees have been given as loans. Should the companies immediately pay the govt back?
For 1 yr the interest will not be charged. So for one year, you can do business. The debt should be paid back within 4 years. Till Oct the loans can be received.
What are the Cons?
There may be a lot of startup companies.
So if we want to start a new business can we get loans?
Many Indians are coming back to India without jobs. They may have some investment. So if they want to start a Micro or a small industry. Can they avail these loans?
The answer may be answered shortly by the govt.
Will this help the Normal People?
This will help the normal people. Giving money to people is useless, but developing the business will make money available to people.
How will it reach Ordinary people?
There may be people near your house who are based on these Small medium enterprises. After the govt has done this, they will move to the Provident Fund. People who receive a salary below 15000 their PF will be paid by the govt for three months. Within November people can pay their income tax. To help the power sector 90000 Crore Rupees have been funded.
Are these power sectors functioning properly?
These power sectors function in losses. This is announced as Discoms. Please search for which companies come under discom. The govt is going to lend them 90000 Crore rupees. Please learn what will the benefits. In the coming days, we will have to speak more about Discoms.
In the coming years, the Power Sectors must face many changes. When the time comes we will discuss more.
Next announcement is Tender. A govt may give many tenders to many people. Due to Corona, these tenders may have been stopped. These tenders can be completed within three to six months and no money will be paid to the govt.
Construction. In real Estate, many could have lend loans or they may have said that they will complete the construction within given days. For them, the time period has been extended to six months.
So 3 Lakh Crore rupees for Small and Medium Companies. Next 90000 crore rupees. 30000 Crore rupees are for finance enterprises. So they have divided if we add them it will come to 13 Lakh Crore rupees.
Is there any news for Ordinary people?
No. People who are hungry will not get any benefits from this notification. This is for the future of India.
Is this possible?
No. Nearly it will take 4 to 5 years to get notifications and settlements been declared. So to the economy to rise up will need 5 to 6 yrs.
Can we transform India into a Self Dependent country?
Yes. We have to use our manufactured products. Please don’t use foreign Products. Bit it is not easy for us. Chinese products cannot be sent away. Our Mobile Phones are from China. So reputed companies using this 20 Lakh Crore rupees must produce quality products for Indian consumers. The Indian govt should monitor this closely. A Govt important job is monitoring. They are bringing in good plans. But are these plans reaching the people?
One month ago we posted about REPo. REPO% decreased. They said people don’t want to pay three months instalments.
How many of you did pay EMI’s?
They took EMI’s from us. So if you don’t pay your EMIs then you have to pay interest. There was a lot of Confusion in that announcement. So the plan didn’t reach the people properly. REOP interest was reduced and people thought that the products interests will also go down. It didn’t decrease. Through these people gain profit only 25%. The remaining 75% is going to waste because the Govt is not monitoring it correctly.
If the govt doesn’t monitor the current situation, then 3 Lakh Crore rupees, will not be received by Ordinary People. Big corporates or People who want to steal the money by starting a business. We will have to identify these people. If we do this properly this plan will work.
We know that the Armed Forces Police canteen, coming June 1st only India products will be supplied this was informed by the govt.
So Indian products if goes to many places. Usage of foreign products will be decreased. Just by bringing in Products into the Armed Forces Police for a year nearly 2500 Crore, rupees Products can be sold and India can profit.
Nearly 50 to 75 Lakh Family members will provide a chance for them to buy Indian products. Everywhere these changes should be implemented. Surely India can become Self Dependent country. India cannot be only Self Dependent they cannot do it alone. India should export products to other countries. These products after fulfilling Indian people’s needs can be exported.
So the coming three days may contain Farmers Proclamation and for workers. If they announce it tomorrow it will be good.
Humans are travelling on foot inroads in hunger. We have to save them first. We believe that they will announce tomorrow.
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