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<ul><li>Finance Minister <keyword id="129243" type="PERSON" weightage="20" keywordseo="Nirmala-Sitharaman">Nirmala Sitharaman</keyword> has announced that the <keyword id="95281" type="PERSON" weightage="20" keywordseo="Essential-Commodities-Act">Essential Commodities Act</keyword> will no longer regulate essential commodities like cereals, edible pills, onions and potatoes.</li><li>If there any exceptions to be made, they will only be considered during times of natural calamities or famine. </li><li>In order to prevent seasonal fluctuations, like with <keyword id="6540349" type="UNKNOWN" weightage="20" keywordseo="Onion-prices">onion prices</keyword>, the government is working towards improving storage facilities and other measures.</li></ul>Agricultural items — including cereals, edible oils, oilseeds, pulses, onions and potatoes — will no longer be covered under the Essential Commodities Act and face deregulation. This means the government will no longer be setting the maximum retail price (MRP) during times of excess supply or demand. Finance Minister Nirmala Sitharaman, in her third instalment of announcements this week, said that this will help enable price realisation for farmers by attracting investments and making agriculture more competitive. “Now, farmers are producing, there’s an abundance of crops which sometimes leads to issues. For instance, sometimes they want to export but we don’t permit them to export because we want to be sure that the prices in India don’t go up. Because of a flip-flop sometimes, farmers don’t get the benefits. Some other times, the consumers suffer,” she explained. So, what will happen when onion prices surge? “There has been a lot of discussion around perishable items like onions, which are seasonal. We are working with state governments to improve storage facilities, drying processes, and allow them to export, whenever possible,” said Sitharaman. The stock limit will only be imposed under very exceptional circumstances, like national calamities and famine when there’s a surge in prices. However, no stock limits will be imposed on processors or value chain participants, who are subject to their installed capacity. They will also not be imposed on any exporter to the export demand. SEE ALSO: <a href="https://www.businessinsider.in/policy/economy/news/finance-minister-nirmala-sitharaman-live-updates-from-third-tranche-modi-20-lakh-crore-stimulus/articleshow/75756781.cms">These are the top takeaways from Finance Minister Nirmala Sitharaman's third installment from Modi's ₹20 lakh crore stimulus</a>

India proposes to deregulate prices of onions, potatoes, pulses and other essential food — prices won’t be capped and one can store as much as needed

<ul><li>Finance Minister Nirmala Sitharam announced agricultural policy changes today, May 15.</li><li>The prices of <keyword id="110766" type="PERSON" weightage="20" keywordseo="essential-commodities">essential commodities</keyword> will now be deregulated under the Essential Commoties Act and Agriculture Produce Market Committee will be open to competition.</li><li><keyword id="4158335" type="PERSON" weightage="20" keywordseo="Ashok-Gulati">Ashok Gulati</keyword>, former chairman of the Commission for <keyword id="691323" type="PERSON" weightage="20" keywordseo="Agricultural-Costs">Agricultural Costs</keyword> and Prices (CACP) — in an exclusive interview — told Business Insider how these reforms should have been brought in years ago.</li></ul>Finance Minister <keyword id="129243" type="PERSON" weightage="20" keywordseo="Nirmala-Sitharaman">Nirmala Sitharaman</keyword> introduced a slew of policy changes to help the agriculture sector in her third instalment of measures help mitigate the effects of the coronavirus lockdown. “I have been asking for this for 20 years,” Ashok Gulati, former chairman of the Commission for Agricultural Costs and Prices (CACP), told Business Insider in an exclusive interview. The big hits were deregulating the <keyword id="95281" type="PERSON" weightage="20" keywordseo="Essential-Commodities-Act">Essential Commodities Act</keyword> to allow market prices to prevail over essential commodities — and reforms to the Agricultural Produce Market Committee (APMC), which will now let farmers sell their product across India. Combined, they are targetted at making farming more competitive. Here are the excerpts from the conversation: Q. How will the APMC reforms effect farmers? Ashok Gulati: Positively. It would have been better if it was done a few years back. When Mr.Modi came in 1.0 — but better. This is trying to open up the markets. Q. So, but won't this compound what e-NAM already brings to the table? Ashok Gulati: So yeah, e-NAM is there, the main thing is today you increasing the stickiness of the APMC markets and your are denotifying that farmers can sell anywhere and that’s very important to any process in the coming years. And that's the main thing. Q.So why is this for benefit farmers? Ashok Gulati: When you create competition for their produce, the price improves. There are more buyers, more choices. They will get the benefits of that. Whether you have one buyer or ten buyers for a service makes a difference. Q. Since they will be able to sell anywhere, will it take away the power of the states in the agricultural sector? Ashok Gulati: So what is the problem in that? Like I’ve said, it's a big, positive step. Q. Aside from APMC, I wanted to ask about the Essential Commodities Act... Ashok Gulati: That's a big-ticket item. All of the last three reforms are bigger than the first eight points. It was completely positive. I might response is congratulations, kudos to but you should have done it in the first year of Modi 1.0. We’ve done now. It’s a corona gift. Q. How are they going to build up storage to support this amendment? Ashok Gulati: The government doesn’t need to do anything. A lot has changed. The private sector will come forward and will fight over it. Reliance, Adani and all the others will figure it out. They will pump in the money. You have to change the law, there is ample interest in the private sector. You just need to stay the course. Essential commodities act will not be reinforced. Q. When the essential commodities act was introduced, it was with the objective to disincentivise hoarding. Who will monitor and ensure that speculation does not occur? Ashok Gulati: We are not in 1955. Enforcement is exactly what we don’t want. Inspector Raj has to be thrown out of the window. What you need is private-sector competition. These are all useless topics of discussion. All nonsense. They have an unnecessary stronghold on India as though we’re living in the pre-Independence era. Q. So, basically, the agricultural sector has been liberalised? Ashok Gulati: Which was overdue. I’ve been asking for this for 20 years. At least with corona, the reforms have finally come in. What hasn’t happened in years, it finally happening thanks to the coronavirus pandemic. There are positive and big bold steps. SEE ALSO: <a href="https://www.businessinsider.in/india/news/essential-commodities-act-to-deregulate-price-of-potatoes-onions-and-pulses/articleshow/75758676.cms">India proposes to deregulate prices of onions, potatoes, pulses and other essential food — prices won’t be capped and one can store as much as needed</a> <a href="https://www.businessinsider.in/business/startups/news/india-sets-up-fund-for-cold-storage-for-farm-products-startups-are-eligible/articleshow/75758088.cms">India now has a ₹1 lakh crore fund to boost farm products storage⁠— and startups are invited too</a> <a href="https://www.businessinsider.in/policy/economy/news/finance-minister-nirmala-sitharaman-live-updates-from-third-tranche-modi-20-lakh-crore-stimulus/articleshow/75756781.cms">These are the top takeaways from Finance Minister Nirmala Sitharaman's third installment from Modi's ₹20 lakh crore stimulus</a>

"I have been asking for this for 20 years," says Ashok Gulati, agriculture scientist ⁠— cheering the changes to Essential Commodities Act and APMC

NEW DELHI: CNG and piped natural gas prices are set to go up shortly, though not as much as feared. Indications emerging from hectic discussions between the oil ministry and <keyword id="71" type="POSITION" weightage="60" keywordseo="Prime-Minister">Prime Minister</keyword>’s Office over the weekend suggest that gas price may be jacked up from $4.2 a unit to $5.5-6.8 per unit. 
 This increase will be almost $2 less than the $8.4 per unit price that was expected on the basis of formula adopted by the <keyword id="26374" type="ORGANIZATION" weightage="80" keywordseo="UPA-government">UPA government</keyword>. But still, the hike will impact daily cost of living, particularly in a city such Delhi where CNG is used for public transport and PNG is increasingly becoming the choice for cooking. 
 
Higher gas price will also have marginal impact on overall cost of power by pushing up electricity tariff for gas-fired plants, which account for roughly 8% of the installed capacity in the country. 
 
READ ALSO: <a href="http://timesofindia.indiatimes.com/business/india-business/RIL-charged-more-than-approved-gas-price-CAG-says/articleshow/35730854.cms">RIL charged more than approved gas price, CAG says</a> 
 
Assuming the government finally settles for a price of $6.8, CNG price in Delhi would go up by approximately Rs 7.50 per kg. Hypothetically even after a new gas price is announced, CNG would still be cheaper than what it cost in February. CNG price was reduced by Rs 14.90 per kg and PNG by Rs 5 per unit in February after the Centre said the entire gas demand would be met with cheaper domestic gas. 
 
Subsequently, CNG price in Delhi was raised by Rs 2.95 per kg in May due to falling rupee and rise in operational costs. So, even after this hike, the current price is Rs 11.95 cheaper than February level. Thus the fuel would be still cost Rs 4.45 less than in February. 
 
The discussions within the government are focused on simplifying the pricing formula to avoid doubling of present gas price. In all likelihood, the new formula would have among the benchmarks, markets with friendlier gas price. Thus Russia is expected to replace Japan, a country that imports gas in ships at very high prices. 
 
The new formula is also expected to specify pricing method based on net calorific value (NCV), which works out 10% cheaper than gross calorific value (GCV). NCV is calculated on reduced volumes upon deducting impurities such as water or other gaseous content present in natural gas. 
 
READ ALSO: <a href="http://timesofindia.indiatimes.com/news/Will-fight-till-end-to-stop-gas-price-hike-Kejriwal/articleshow/34301914.cms">Will fight till end to stop gas price hike, Kejriwal says</a> 
 
There is also a possibility that the government could opt for a differential pricing by applying the latest pricing only to fields that are currently in production. Others that come on stream in near future, such as state-run ONGC’s marginal fields, would be allowed to sell at market price through tender system. 
 
Such a move is seen serving two purposes: One, it will mark a gradual shift towards market-determined pricing shift-- the original aim of oil sector reforms. Two, in a single stroke it would brighten investment climate by removing clouds over viability of new discoveries – mostly in deep and frontier waters. 
 
Another option on the table also envisages asking ONGC, the biggest beneficiary of any price revision, to part some of the money to share increased fuel subsidy. Taking off on this, there are also suggestions that the government could deregulate diesel price while simultaneously reducing Central levy on the fuel in the Budget to soften the blow on consumers. ONGC then can be asked to share the increased burden on fertilisers. 
 Prime minister <keyword id="6354477" type="PERSON" weightage="40" keywordseo="Narendra-Modi">Narendra Modi</keyword> has held two rounds of brainstorming sessions, mainly focused on the issue, with <keyword id="60115" type="POSITION" weightage="40" keywordseo="Oil-minister">oil minister</keyword> Dharmendra Pradhan and <keyword id="46538" type="POSITION" weightage="40" keywordseo="Petroleum-Secretary">petroleum secretary</keyword> Saurabh Chandra. After a five-hour session on Friday evening, the PM held another round of discussion on Sunday that was also attended by finance minister <keyword id="42575" type="PERSON" weightage="40" keywordseo="Arun-Jaitley">Arun Jaitley</keyword>. 
 
 The framing of policy on gas pricing became a hot potato after a political storm arose during elections over allegations of crony-capitalism, public interest litigation in the Supreme Court as well as arbitration notices served against the government by <keyword id="6355199" type="CITY" weightage="40" keywordseo="Reliance-Industries">Reliance Industries</keyword> Ltd and BP Plc. 
 But subsequent question whether Reliance Industries Ltd should be allowed higher gas price due to drop in output from its KG-D6 field delayed notification. Later, the Election Commission stepped in after a letter from AAP leader <keyword id="260213" type="PERSON" weightage="40" keywordseo="Arvind-Kejriwal">Arvind Kejriwal</keyword>, sending the entire issue into a tailspin.

Gas Price To Go Up, Though Less Than UPA Plan

<ul><li>Finance Minister <keyword id="129243" type="PERSON" weightage="20" keywordseo="Nirmala-Sitharaman">Nirmala Sitharaman</keyword> today announced that the government will make amends to the <keyword id="95281" type="PERSON" weightage="20" keywordseo="Essential-Commodities-Act">Essential Commodities Act</keyword>. </li><li>The FM said that through the amendments better price realisation will be made possible for <keyword id="45092" type="COMPANY" weightage="20" keywordseo="farmers">farmers</keyword> and cereals, edible oils, oilseeds, pulses, onions and potato will be deregulated.</li><li>The act was brought into place in 1955 for the control of the production, supply and distribution of, and trade and commerce, in certain <keyword id="35149" type="PERSON" weightage="20" keywordseo="commodities">commodities</keyword>. The act is applicable to the whole of India.</li></ul>Finance Minister Nirmala Sitharaman today announced that the government will be making changes to the <keyword id="110766" type="PERSON" weightage="20" keywordseo="essential-commodities">Essential Commodities</keyword> Act. The FM said that through the amendments better price realisation will be made possible for farmers and cereals, edible oils, oilseeds, pulses, onions and potato will be deregulated. Stock limits will be imposed only under exceptional circumstances like national calamities, famine with a surge in prices. No such stock limit shall apply to processors or value chain participants, or to any exporter subject to export demand. What is the Essential Commodities Act that was initially implemented in 1955? The act was brought into place for the control of the production, supply and distribution of, and trade and commerce, in certain commodities. The act is applicable to the whole of India. Under the act, the government of India controls the price of essential commodities, and can also decide to increase or decrease the supply of the product in the market. It also gives the government to regulate through licences, permits or otherwise the storage, transport, distribution, disposal, acquisition, use or consumption of any essential commodity. Through this act, the government does not need any legislation or debate to increase prices of food products across the country. However, in recent years the Essential Commodities Act has come under a lot of debate. It has also been called ‘<a href="https://theprint.in/opinion/draconian-essential-commodities-act-needs-to-go-if-india-wants-to-raise-farm-incomes/183006/">draconian</a>’ by certain sections as it gives the government complete control. See Also: <a href="https://www.businessinsider.in/india/news/essential-commodities-act-to-deregulate-price-of-potatoes-onions-and-pulses/articleshow/75758676.cms">India proposes to deregulate prices of onions, potatoes, pulses and other essential food — prices won’t be capped and one can store as much as needed</a> <a href="https://www.businessinsider.in/policy/economy/news/finance-minister-nirmala-sitharaman-live-updates-from-third-tranche-modi-20-lakh-crore-stimulus/articleshow/75756781.cms">These are the top takeaways from Finance Minister Nirmala Sitharaman's third installment from Modi's ₹20 lakh crore stimulus</a>

What is the Essential Commodities Act – the 65-year old act that FM Nirmala Sitharaman said will now be amended

<ul><li>The amendment to the <keyword id="95281" type="PERSON" weightage="20" keywordseo="Essential-Commodities-Act">Essential Commodities Act</keyword> was introduced as a part of the slew of reforms that Finance Minister Nirmala Sitharaman introduced in May 2020 as relief measures for COVID-19 pandemic.</li><li>Through the amendments, better price realisation will be made possible for <keyword id="45092" type="COMPANY" weightage="20" keywordseo="farmers">farmers</keyword> and cereals, edible oils, oilseeds, pulses, onions and potatoes will be deregulated. </li></ul>The monsoon session of the parliament will begin on September 14, and one of the amendments that will be up for discussion is for the Essential Commodities Act. Introduced as a part of the slew of reforms that Finance Minister Nirmala Sitharaman introduced in May 2020 as relief measures for the COVID-19 pandemic and the ₹20 trillion stimulus package, the government had said it was a landmark decision which would help India’s farmers. The amendment was a step towards creating ‘One India, One <keyword id="6355165" type="UNKNOWN" weightage="20" keywordseo="agriculture">agriculture</keyword> market’. The Essential Commodities Act (ECA) was passed by the Union Cabinet in June and is now an <keyword id="152892" type="PERSON" weightage="20" keywordseo="Ordinance">ordinance</keyword>. The ECA will lapse if it doesn’t get cleared by the Parliament in this session. Amendments to the Essential Commodities Act Through the amendments, better price realisation will be made possible for farmers and cereals, edible oils, oilseeds, pulses, onions, and potatoes will be deregulated. Stock limits will be imposed only under exceptional circumstances like national calamities, famine with a surge in prices. No such stock limit shall apply to processors or value chain participants, or any exporter subject to export demand. According to PRS, a stock limit may only be imposed if there is: (i) a 100% increase in the retail price of horticultural produce; and (ii) a 50% increase in the retail price of non-perishable agricultural food items. What is referred to as Essential Commodity? Currently, essential commodities are defined as per the schedule within the act. The schedule entails drugs (fertilisers – inorganic, organic or mixed), petroleum and petroleum products, food products, raw jute and jute textiles, seeds of food crops, fruits, vegetables, and cattle fodder, jute seed, cottonseed. During this COVID-19 pandemic, face masks and hand sanitizers were added to the list. This was due to the scarcity of the products, and as there were cases of a price increase. However, deeming them essential the government notified that their prices cannot be increased. The notification was in force until June 30, and the two items <a href="https://economictimes.indiatimes.com/news/economy/policy/hc-rejects-plea-seeking-to-classify-masks-sanitisers-as-essential-commodities/articleshow/77611390.cms">aren’t classified</a> as essential anymore, once the availability in the market improved. What is the Essential Commodities Act initially implemented in 1955? The act was brought into place for the control of the production, supply and distribution of, and trade and commerce, in certain commodities. The act then allowed the government of India to control the price of essential commodities, and also decide to increase or decrease the supply of the product in the market. It also gives the government to regulate through licences, permits or otherwise the storage, transport, distribution, disposal, acquisition, use or consumption of any essential commodity. However, in recent years the Essential Commodities Act has come under a lot of debate. It has also been called ‘<a href="https://theprint.in/opinion/draconian-essential-commodities-act-needs-to-go-if-india-wants-to-raise-farm-incomes/183006/">draconian</a>’ by certain sections as it gives the government complete control. SEE ALSO: <a href="https://www.businessinsider.in/science/health/news/the-epidemic-diseases-amendment-ordinance-protecting-the-corona-warriors/articleshow/78038114.cms">The Epidemic Diseases (Amendment) Ordinance — protecting the ‘corona warriors’</a>

Monsoon session of Parliament: All you need to know about the Essential Commodities ordinance

<ul><li>Citing the example of other industries where there are no restrictions on how producers sell their products, Finance Minister Nirmala Sitharaman said that farmers should have the choice to sell their produce at attractive prices. </li><li>To this end, Sitharaman said that the government will formulate a central law that will provide barrier-free inter-state trade, along with a framework for online trading of agricultural produce. </li><li>However, for this to pass muster, the government will have to garner support from the opposition parties and farmer bodies, who think APMCs are needed to ensure farmers get a good price for their produce. </li></ul>The Modi government is using COVID-19 crisis to push through the <keyword id="6366428" type="UNKNOWN" weightage="20" keywordseo="APMC">APMC</keyword> reforms it has been talking about for a long time. Finance Minister Nirmala Sitharaman made the announcement in the third tranche of the Covid-19 stimulus package today, May 15. Making the announcement, Sitharaman said that this move will give the choice to sell their produce at attractive prices, instead of being tied down to their local APMCs (Agriculture Produce Market Committee). “When you create competition for farmers’ produce, the price improves. There are more buyers, more choices. Farmers will get the benefits of that. Whether you have one buyer or ten buyers for a service makes a difference,” said Ashok Gulati, former chairman of the Commission for Agricultural Costs and Prices. <div type="Article" hostid="261" msid="75756781" title="These are the top takeaways from Finance Minister Nirmala Sitharaman's third installment from Modi's ₹20 lakh crore stimulus" mstype="2" mssubtype="0"></div> APMC reforms might hit a roadblock in non-BJP ruled states Modi has been batting for APMC reforms for a long time now. “It is imperative to swiftly undertake market reforms of our decades old and restricted agriculture produce and marketing committee (APMC) architecture,” PM Modi <a href="https://www.livemint.com/Politics/M6HMO4jTZrn1iwwbypaEbL/Narendra-Modi-calls-for-swift-APMC-reforms-to-benefit-farmer.html">said</a> in a letter to Chief Ministers in 2018. However, these reforms might hit a roadblock in non-BJP ruled states. “The APMCs have existed since 1963 and there is a good reason they have been around for such a long time. Reform is welcome but it cannot endanger an existing structure. Our party will oppose this proposal if and when it comes before the legislature," a NCP leader was quoted as saying by <a href="https://www.livemint.com/Politics/reRgHJ4NW4Sl4EJMXRyzHJ/APMC-reforms-in-Maharashtra-hit-a-roadblock.html">Livemint</a>. Those who favour the existing APMC structure <a href="https://timesofindia.indiatimes.com/city/mysuru/farmers-oppose-proposed-amendment-to-apmc-act/articleshow/75744758.cms">argue</a> that diluting APMC reforms will give power to multinational companies and corporates. They are also concerned about minimum support price guarantee, without price regulation in place. So far, only BJP-ruled states like Gujarat, Madhya Pradesh and Uttar Pradesh have passed APMC reforms. The Karnataka government issued an ordinance, but it was <a href="https://timesofindia.indiatimes.com/city/bengaluru/bengaluru-governor-returns-apmc-reforms-ordinance/articleshow/75729589.cms">returned</a> by the state governor earlier today. Sitharaman says the changes will empower farmers Making the announcement, Sitharaman said that farmers should have the freedom of choice to sell their agricultural produce at attractive prices. Further, she said that no other industry restricts producers from selling their product to whomever they want, and at their desired prices. To solve this problem, Sitharaman said that the central government is working on a law. This will remove barriers to inter-state trade and allow farmers to sell their produce to the highest bidder, which should result in increasing their incomes. Apart from this, she also said that a framework for online trading of agricultural produce will also be worked upon. It is likely that this framework will be on the lines of e-NAM, which is a national agriculture market with an online trading platform for farmers. What’s wrong with APMCs? APMCs were set up with the intention to increase farmers’ incomes by making it easier to sell their produce without having to deal with commission agents. However, the government criminalised setting up of competing markets in the same area, essentially creating a monopoly in the form of APMCs. This led to traders forming cartels to artificially lower prices of the agriculture produce they buy from farmers. A 2012 <a href="https://www.cci.gov.in/sites/default/files/AO.pdf">report</a> by the Competition Commission of India cites the example of a visit to Ahmednagar APMC which revealed collusion among traders. These traders then sell the produce at higher prices to end consumers. While APMCs were formed to benefit farmers, it’s the traders who end up milking both farmers as well as consumers. See also: <a href="https://www.businessinsider.in/india/news/essential-commodities-act-to-deregulate-price-of-potatoes-onions-and-pulses/articleshow/75758676.cms">India proposes to deregulate prices of onions, potatoes, pulses and other essential food — prices won’t be capped and one can store as much as needed</a> <a href="https://www.businessinsider.in/politics/policy/news/what-is-essential-commodities-act-that-nirmala-sitharaman-wants-to-amend/articleshow/75759156.cms">What is the Essential Commodities Act – the 65-year old act that FM Nirmala Sitharaman said will now be amended</a>

Modi is using the COVID-19 crisis to push through APMC reforms he has wanted for long⁠— but states may oppose

<ul><li>Finance Minister <keyword id="129243" type="PERSON" weightage="20" keywordseo="Nirmala-Sitharaman">Nirmala Sitharaman</keyword> on May 18 announced the last tranche of the ₹20 lakh crore stimulus package. </li><li>The economic stimulus package included measures like free food grains, hike in foreign direct investment for defence, liquidity measures for MSMEs, amended in Essential Commodities Act, increase in public expenditure in health, among others. </li><li>While the Narendra Modi government promised to allocate 10% of the GDP, the Reserve Bank of India’s measures accounts for nearly half the economic package. </li></ul>Finance Minister Nirmala Sitharaman on May 18 announced the last tranche of the ₹20 lakh crore Atma Nirbhar Bharat Abhiyan economic package to fight the coronavirus pandemic led economic slowdown in the country. However, while the Narendra Modi government promised to allocate 10% of the GDP, nearly half of the stimulus package is spent by the Reserve Bank of India. Global investment bank <keyword id="6361649" type="UNKNOWN" weightage="20" keywordseo="Goldman-Sachs">Goldman Sachs</keyword> said that most of the reforms announced by the Indian government will have an impact in the medium term while the short term may see a "deeper recession", and added that the country's real GDP growth may fall 5% in the current financial year ending March 2020. The economic stimulus package included measures like free food grains, hike in foreign direct investment for defence, liquidity measures for MSMEs, amendments in Essential Commodities Act, increase in public expenditure in health, among others. Whereas, the RBI package included measures like moratorium on loan repayments for all borrowers,and interest rate cut etc. “RBI has announced ₹9 lakh crore plus, but the actual money utilised (so far) is ₹8 lakh crore,” FM Nirmala Sitharaman said while explaining the break-up of the stimulus package. PM Narendra Modi said the package was <a href="https://www.businessinsider.in/india/news/pm-modi-promises-to-please-everyone-with-his-stimulus-package/articleshow/75701113.cms">designed keeping in mind</a> factors like land, labour, liquidity and laws. Here’s a breakdown of India’s ₹20 lakh crore stimulus package: <div type="image" title="overall" msid="75798397" hostid="261"></div> The first tranche worth ₹5.94 lakh crore provided a credit line to small businesses and support to shadow banks and electricity distribution companies <div type="image" title="tranche 1" msid="75798413" hostid="261"></div> There <a href="https://www.businessinsider.in/policy/economy/news/breaking-down-modi-20-lakh-crore-stimulus-rbi-and-finance-ministry-steps-land-and-labour-laws/articleshow/75709001.cms">were 15 measures,</a> of which 6 were for MSMEs. The definition of SMEs was changed and the investment limit to qualify as MSMEs was raised. During the first tranche, Sitharaman announced ₹3 lakh crore collateral-free automatic loans for businesses. Apart from this, the government also increased the deadline for<a href="https://www.businessinsider.in/business/news/benefits-for-real-estate-sector-in-finance-minister-20-lakh-crore-stimulus-package/articleshow/75719588.cms"> real estate projects. </a> The second tranche included free foodgrains to stranded migrant workers for two months and credit to farmers, totalling ₹3.10 lakh crore <div type="image" title="tranche 2" msid="75798427" hostid="261"></div> There were <a href="https://www.businessinsider.in/policy/economy/news/finance-minister-nirmala-sitharaman-top-news-and-highlights-may-14/articleshow/75736580.cms">nine announcements in all in the second tranch</a>e of the stimulus package which focussed on migrant workers, small traders, small farmers etc. The government announced free food grain supply to migrant workers for 2 months. A National portability of ration cards — One Nation, One Ration card — was announced which allowed people to take ration from any public distribution unit in the country. The third tranche was worth ₹1,50,000 crore and focused on farming and related activities <div type="image" title="tranche 3" msid="75798441" hostid="261"></div> Sitharaman promised to allocate money and quickly ramp up policies in these spaces. The government allocated ₹1 lakh crore to strengthen farm-gate infrastructure. The government said the Essential Commodities Act <a href="https://www.businessinsider.in/policy/economy/news/finance-minister-nirmala-sitharaman-live-updates-from-third-tranche-modi-20-lakh-crore-stimulus/articleshow/75756781.cms">will be amended</a> to deregulate prices of cereals, edible oils, oilseeds, pulses, onions, potatoes etc. <a href="https://www.businessinsider.in/policy/economy/ashok-gulati-interview-on-essential-commodities-act-and-apmc-changes/articleshow/75760364.cms">According to Ashok Gulati</a>, former chairman of Commission of Agricultural Costs and Prices (CACP), this will allow market prices to prevail over essential commodities. The government also removed stock limit imposed on processors or value chain participants or any exporter subject to export demand, The fourth and fifth tranches that dealt mostly with structural reforms were worth ₹48,100 crore <div type="image" title="tranche 4 and 5" msid="75798458" hostid="261"></div> The <a href="https://www.businessinsider.in/policy/economy/news/finance-minister-nirmala-sitharaman-live-updates-from-third-tranche-modi-20-lakh-crore-stimulus/articleshow/75756781.cms">reform</a>s focused on coal, minerals, defence production, civil aviation, power distribution in Union Territories, space and atomic energy. India opened up more of its airspace for airlines, and also decided to put 6 airports up for auction. The government said<a href="https://www.businessinsider.in/stock-market/news/indigo-spicejet-adani-gmr-gvk-share-price-may-gain-after-civil-aviation-reforms/articleshow/75775888.cms"> airlines will fly on shorter routes</a> which would save ₹1,000 crore a year. Separately, the government allowed startups in the space sector to use resources of Indian Space Research Organisation. In the fifth <a href="https://www.businessinsider.in/policy/economy/news/finance-minister-nirmala-sitharaman-final-stimulus-plan-to-boost-gdp-of-india/articleshow/75784571.cms">tranche the government added ₹40,000 crore budget allocation</a> in the Mahatma Gandhi Rural Employment Guarantee Act (MNREGA). However, according to a financial services company Nomura, the minimum wage job may be a temporary relief and once the lockdown is over, urban businesses will struggle with the shortage of labour. Several experts have criticised the government’s latest economic package and said it is inadequate to provide immediate relief to the distressed part of the society. “The package may fall short of mitigating the near-term existential crisis for businesses and workers, but is better designed to improve India’s medium-term growth potential and attract long-term risk capital. As a consequence, we maintain our GDP growth projection for 2020 at -5% y-o-y,” Noaura, a global market research firm said. SEE ALSO: <a href="https://www.businessinsider.in/india/news/india-among-58-nations-questioning-who-on-covid-19-response/articleshow/75797251.cms">India among 58 nations questioning WHO on COVID-19 response</a> <a href="https://www.businessinsider.in/india/news/lockdown-4-0-india-issues-new-guidelines-allowing-states-to-decide-the-red-green-and-orange-zones/articleshow/75790707.cms">Lockdown 4.0 ⁠— India issues new guidelines allowing states to decide the red, green, and orange zones</a>

Here's a breakup of Narendra Modi's ₹20 lakh crore stimulus⁠— RBI measures make up for nearly half of it

<ul><li>Out of the 11 measures announced on May 15, 8 related to strengthening infrastructure, logistics, storage capacity.</li><li>Three of them were related to governance and administrative reforms, the Minister said speaking in New Delhi. </li><li>Sitharaman promised that government will allocate money and to quickly ramp up existing policies in these spaces.</li></ul><keyword id="6355261" type="UNKNOWN" weightage="20" keywordseo="finance-minister">Finance Minister</keyword> Nirmala Sitharaman's third tranche of the ₹20 lakh crore ($270 billion) economic stimulus promised by Prime Minister Narendra Modi from the government in New Delhi was dedicated to farming and allied activities including fisheries and animal husbandry etc. The first tranche was a clearly quantifiable ₹5.9 lakh crore ($78 billion) push for micro, small and medium (MSME) businesses, non-banking financial companies, among others. The second one was dedicated largely to providing relief to migrant workers and small farmers. One nation, one ration card was one of the highlights of the announcement. ALSO READ: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/for-one-nation-one-ration-card-scheme-narendra-modi-and-nirmala-sitharaman-face-many-risks/slidelist/75752500.cms">For ‘One nation, one ration card’ to work, India has to fix a bunch of issues on war footing</a> Out of the 11 measures announced on May 15, 8 related to strengthening infrastructure, logistics, storage capacity and 3 were related to governance and administrative reforms. Sitharaman promised that government will allocate money and to quickly ramp up existing policies in these spaces. These are the top highlights of the Finance Minister's speech on May 15: 1. ₹1 lakh crore ($13 billion) allocated to strengthen <a href="https://www.businessinsider.in/business/startups/news/india-sets-up-fund-for-cold-storage-for-farm-products-startups-are-eligible/articleshow/75758088.cms" data-type="tilCustomLink" target="_blank">farm-gate infrastructure like cold chains, storage centres</a>etc. The fund created for cooperatives,farmers producer organisations, private entrepreneurs, startups etc. looking to enter this space. <div type="Article" hostid="261" msid="75758676" title="India proposes to deregulate prices of onions, potatoes, pulses and other essential food — prices won’t be capped and one can store as much as needed" mstype="2" mssubtype="0"></div> 2. For micro food enterprises, the government will provide a fund of ₹10,000 crore. The intention is to help local manufacturers and brands, in the health and wellness space, organic products, nutrition products etc. to go global. The fun will go into modernising, formalising, and bringing these firms up to global standards. This will be cluster-based approach. For instance, makhana makers in Bihar, saffron products makers in Kashmir, tapioca makers in Tamil Nadu, ragi makers in Karnataka etc. can benefit from this. 3. Pradhan Mantri Matsya Sampada Yojana (a scheme dedicated to marine fisheries and aquaculture):₹20,000 crore to boost fish production by 7 million tonnes in the next five years. 4. [An existing programme] ₹13,343 crore had been allocated for National Animal Disease Control Programme in January 2020 to ensure 100% vaccination of cattle, buffalo, sheep, goat and pig population (over 53 crore animals). 1.5 crore cows and buffaloes tagged and vaccinated till date. This will continue in green zones. 5. A new fund of ₹15,000 crore is being established to boost animal husbandry infrastructure development. Dairy producers and processors will be eligible for incentives being provided from this fund. Those who want to set up plants for export of niche dairy products will also be supported. 6. ₹4,000 crore for promotion of cultivation of medicinal plants. 1 million hectares to be covered under herbal cultivation in the next two years. This will lead to income generation of ₹5,000 crore for farmers. Development of a corridor of 800 hectare area along the banks of river Ganga. A network of regional markets (mandis) will be created for medicinal plants. 7. ₹500 crore for beekeeping initiatives. Government will implement a scheme for infrastructure development related to Integrated Beekeeping Development Centres, Collection, Marketing and Storage Centres. This will lead to an increase in yield and crop quality, resulting in increase in income for 2 lakh beekeepers. 8. ₹500 crore for subsidy to farmers of green produce (fruits and vegetables). 50% subsidy for transportation of green produce from surplus to deficient markets. 50% subsidy for storage of green produce. This pilot project will initially be for a period of 6 months - the government says it will be expanded and extended in the future. 9. <a href="https://www.businessinsider.in/politics/policy/news/what-is-essential-commodities-act-that-nirmala-sitharaman-wants-to-amend/articleshow/75759156.cms" data-type="tilCustomLink" target="_blank">Essential Commodities Act</a>will be amended to deregulate prices of cereals, edible oils, oilseeds, pulses, onions and potato etc. Stock limits to be imposed only under exceptional circumstances like national calamities, famine with a surge in prices. No such stock limit shall apply to processors or value chain participants, or to any exporter subject to export demand. 10. Farmers will be given the choice to sell their produce at attractive prices, instead of selling it to just <a href="https://www.businessinsider.in/politics/news/bjp-narendra-modi-nirmala-sitharaman-push-agriculture-apmc-reform/articleshow/75760189.cms" data-type="tilCustomLink" target="_blank">APMCs (Agricultural Produce Market Committee)</a>. Framework for e-trading of agricultural produce to be included in the central law proposed to be formulated. <div type="Article" hostid="261" msid="75760364" title="I have been asking for this for 20 years, says Ashok Gulati, agriculture scientist ⁠— cheering the changes to Essential Commodities Act and APMC" mstype="2" mssubtype="0"></div> 11. Agricultural Produce Price and Quality Assurance. Facilitative legal framework to be created to enable farmers for engaging with food processors, aggregators, large retailers, exporters etc. Risk mitigation for farmers, assured returns and quality standardisation shall form an integral part of the framework Taking stock of the measures taken during the lockdown. ₹74,300 crore worth agricultural produce was purchased at minimum support prices since the lockdown began on March 25. ₹18,700 crore cash has transferred from the Prime Minister's Kisan (farmer) Fund. ₹6,400 crore worth claims under PM Fasal Bimal Yojana (crop protection scheme). Milk cooperatives bought 560 litres of every day against the daily demand of 360 litres. Additional 111 crore litres of milk was purchased and dairy farmers were paid ₹4,100 crore. The excess milk will be converted to milk powder, a Finance Ministry official said. SEE ALSO: <a href="https://www.businessinsider.in/business/startups/news/zomato-lays-off-13-of-its-workforce-announces-pay-cuts-for-all/articleshow/75756087.cms" data-type="tilCustomLink" target="_blank">Zomato lays off 13% of its workforce, announces pay cuts for all – CEO Deepinder Goyal says 40% of their restaurants could shut down in 12 months</a> <a href="https://www.businessinsider.in/business/startups/news/hyderabad-startup-vera-healthcare-has-built-a-testing-bus-for-covid-19-with-an-inhouse-quarantine-berth-and-will-cover-upto-10000-houses-in-a-day/articleshow/75755521.cms" data-type="tilCustomLink" target="_blank">This Hyderabad-based startup has built a testing bus for Covid-19 – with an inhouse quarantine berth and will cover upto 10,000 houses in a day</a> <a href="https://www.businessinsider.in/stock-market/news/biocon-share-price-falls-after-earnings-and-mutual-funds-stake-in-the-stock/articleshow/75754048.cms" data-type="tilCustomLink" target="_blank">Biocon was a hot stock before the latest earnings— from Tata Asset Management to Baroda AMC, at least five mutual fund houses added it to their portfolio</a>

These are the top takeaways from Finance Minister Nirmala Sitharaman's third installment from Modi's ₹20 lakh  crore stimulus

Many senior Indians love to day dream of how ‘it was back then’. This romanticized nostalgia makes you feel better for a while. However, your reminiscence of how a hotel room once cost Rs. 10 a night and a kilo of Potato would have left you poorer by a few paisa is definitely not an accurate yardstick to gauge how our economy has evolved over half a century. 
 
Business Insider India looks into the Rupee vs. Dollar tussle over the last 69 years to find out how the Indian economy fared since the Brits left and the major economic policies that helped shape India’s economic destiny. 
 
Jawaharlal Nehru (1947 -1964) 
 
Nehru believed in import substitution industrialization and mixed economy, i.e. where the public and private sector happily co-exist. The government invested heavily in steel, iron, coal, and power, promoting them with subsidies and protectionist economic policies. 
 
Not siding with any the US or Soviet Union in the Cold War meant India received help from both. His critics however point out that his idea of import substitution industrialization actually weakened the international competency of Indian manufacturing industries. 
 
India’s GDP grew by around 4% YoY – faster than the US or UK. Indian industry grew 7.0% from 1950 to 1965. However, low income and the population boom were biting at the nation’s knees. 
 
Shri Lal Bahadur Shastri (1964 - 1966) 
 
Shastri was a Socialist, just like Nehru. He led the White Revolution and created the National Dairy Development Board. He also promoted the Green Revolution and the ‘Shastri Vrat’ – the idea of skipping a meal every week. There was a thundering nationwide response with even restaurants downing shutters on Monday evenings. 
 
Smt. Indira Gandhi (1966 - 1977) 
 
There’s a lot of debate around whether Gandhi was a Socialist or not. She has also been accused of implementing populist policies for her political gains. Let’s leave that to the Historians, Politicians and Economists. 
 
Gandhi was handed over an unsettled economy, thanks to the expenses from the 1965 Indo-Pak war. The government responded by liberalizing the economy and devaluing the currency in return for the restoration of foreign aid. The economy recovered and grew by a steady4.1% over 1966–1969. However, as India-US foreign relations strained over the Vietnam issue. This bitter experience taught Gandhi never to depend on foreign aid so much. She now took to building foreign exchange reserves. In 1976 India was officially declared a socialist state and liberalization was dumped altogether. Last but not the least, who can forget the Emergency of 1975 and that it was justified on economic grounds. 
 
Shri Morarji Desai (1977 - 1979) 
 
The Janata government headed by Desai had lesser progress with economic policies than Gandhi. It wanted to promote self-reliance and indigenous industries, however, its foreign-Indian company partnership programmes set off many multinationals like IBM and Coca-Cola. While some corporations exited, others decreased their investment amounts. 
 
The government also failed to stem inflation, unemployment, and the lack of fuel. Also, you have a heady concoction when you mix poverty with the legalization of strikes and empowerment of trade unions. 
 
Smt. Indira Gandhi (1980 - 1984) 
 
When Gandhi was re-elected Prime Minister, she was against handed over an ailing country with the strongest recession in the history of modern India. 
 
With inflation ruling supreme at 18.2%, Gandhi launched Garibi Hatao. Public expense was tightened and State Owned Properties were remodeled for greater efficiency. In 1982, the government launched Operation Forward – its first step into large scale reform. She also managed to bring down inflation to 6.5%, however employment stayed constant. 
 
Shri Rajiv Gandhi (1984 - 1989) 
 
Rajiv Gandhi tried to liberalize the economy again by incentivizing private enterprise. However, he faced stiff opposition from inside the Congress. He increased investment on technology and reduced taxes and import quotas. Telecommunications, airlines and computer prices were lowered. He also tried to taper the infamous License Raj. 
 
Shri. V.P. Singh (1989 - 1990) 
 
The V.P Singh government is best known for the 1990 Reliance controversy. In that year financial corporations like the Life Insurance Corporation of India (LIC) stopped Reliance from gaining control over Larsen &amp; Toubro (L&amp;T). The Ambanis took a step back and Dhirubhai Ambani made way for D. N. Ghosh to be the chairman of L&amp;T. 
 
P. V. Narasimha Rao (1990 - 1996) 
 
Rao’s government was geared towards cutting fiscal deficit, privatization, and increasing infrastructure spending. Most of this was aimed to avoid the possible economic crisis of 1991. He also reformed capital markets, deregulated domestic business and increased foreign trade. 
 
Rao also appointed economist Manmohan Singh as the Finance Minister. The results were visible on paper. India received $5.3 billion foreign investment in 1995-96 as compared to only $ 132 million in 1991-92. The government further cut the strands of industrial licensing. Now, only 18 key industries were subject to industrial licensing. 
 
Shri H. D. Deve Gowda (1996 - 1997) 
 
Deve Gowda was quite unexpectedly chosen as the12th Prime Minister of India after Narasimha Rao lost. While he headed the Steering Committee of the United Front, there’s hardly anything you can do in just about a year’s time. 
 
Shri Inder Kumar Gujral (1997-1998) 
 
Gujral was chosen to be Prime Minister over Lalu Prasad Yadav, Mulayam Singh Yadav and a few others. His government is best known for the Lalu Prasad Fodder Scam and the controversial decision of recommending the President's rule in Uttar Pradesh in 1997. 
 
Shri Atal Bihari Vajpayee (1998 - 2004) 
 
The Vajpayee government pushed for privatization of government owned corporations and pro-business, free market reforms. Many of these were envisioned by Narasimha Rao, but were restricted due to the 1997 Asian financial crisis. This transformed India’s economic landscape forever. IT flourished and deregulation of trade and commerce, infrastructural leaps and corporate law reforms made India a lucrative market to invest in. 
 
Dr. Manmohan Singh (2004 - 2014) 
 
The one who saved India from the clutches of the License Raj and promoted liberalization was now on the front seat. Under him India achieved 9% GDP growth rate in 2007 to become the second fastest growing economy in the world. Singh also took on some of the projects Vajpayee left off and worked on reforming key banking and finance laws. In 2005 VAT replaced Sales Tax as the more effective program. However, in 2007 the global inflation hit hard, and Singh had the herculean task of making sure it hit India to the most minimum extent possible. 
 
Narendra Modi (2014-Present) 
 
Modi was elected the Prime Minister with overwhelming majority. His government aims to streamline bureaucratic requirements and ease the burden on companies to make governance more effective and efficient. Modi aims to do that by moving a large chunk of governmental processes online.He envisions this to work best to eradicate corruption and fasten bsuinees processes. He also relaxed India’s foreign direct investment (FDI) policies and championed the Make in India campaign to attract global investment. 
 
Image credit: Knoema

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