Another stimulus to support the ailing Indian economy likely before Diwali: Report

This comes at a time when Indian economy is on its way to register the worst ever annual performance, after GDP contracted by 23.9 per cent in the June quarter.

After the first stimulus package of Rs 21 lakh crore called Atma Nirbhar Bharat which aimed at supporting the economy amid the coronavirus induced lockdown, the government is planning to come up with 'Pradhan Mantri Rojgar Protsahan Yojna' which will provide subsidy for employment in the next two years, said an NDTV report.

The report said the subsidy could be in the form of up to 10 per cent PF contribution for both employees and employers.

'Pradhan Mantri Rojgar Protsahan Yojna' was also launched last year and closed on March 31 of the same year.

According to the report, if any new company gets registered with EPFO, the government will give 10 per cent of PF contribution of the employee and 10 per cent of the PF contribution of the employer.

According to the proposal, such a scheme will be applicable to those employees whose salary does not exceed Rs 15,000, said the report.

Companies with less than 50 employees may be asked to employ two new employees while those with more than 50 employees may be asked to add five new employees to avail the subsidy.

A new company registered under EPFO will be able to avail the scheme for all the eligible workers as the employee reference base for such organisations will be considered zero.

The subsidy will be provided for the next two months though the scheme may be open for only six to seven months, the report said.

The report said that there is a strong possibility that this scheme, developed by the mInistry of labour, will be added in the stimulus package. It has been already discussed at the Prime Minister's office, it added.

Earlier today, the Cabinet approved a production-linked incentive (PLI) scheme of Rs 2 lakh crore for 10 sectors aimed to boost the domestic manufacturing sector, exports, and attract investment, Information and Broadcasting Minister Prakash Javadekar said after a meeting of the Cabinet.

The 10 sectors included in the PLI scheme are sectors such as white goods manufacturing, pharmaceutical, specialised steel, auto, telecom, textile, food products, solar photovoltaic and cell battery, said the report.

Last month Finance Minister Nirmala Sitharaman and in the beginning of this month Finance secretary Ajay Bhushan Pandey hinted at the possibility of a second stimulus package.