What does the government really want to achieve through the latest stimulus package called the Atma Nirbhar 3.0?

If you look at the stimulus package, it is broken up into a number of outlays including housing, rural jobs, infrastructure support, R&D, capital contribution to small businesses etc. The total stimulus package outlay has been set at Rs.265,000 crore with nearly 80% going towards the PLI scheme and the fertilizer subsidy for farmers.

If you break up the overall allocation, the biggest chunk goes to the Products Linked Incentives scheme or the PLI scheme. The package made allocation of Rs.146,000 crore towards PLI program to boost the fortunes companies that can create jobs and exports from India and given an impetus to growth.

This will encourage international companies in sectors like pharma, electronics, textiles, cells, solar products etc to invest in India with a view to manufacture and export with India as the base. The second major allocation is towards fertilizer subsidy for farmers including a payout of fixed fertilizer allowance with an allocation of Rs.65,000 crore.