Net Direct Tax collections for the Financial Year 2021-22 have grown at over 100%

According to a spokesperson, the government of India is planning for a credit incentive program worth Rs. 500 billion (US$ 6.8 billion) to boost health care infrastructure in the country.

The program would offer firms to leverage the fund to expand hospital capacity or medical supplies. Under this program the government would be the guarantor, stated the spokesperson. The emphasis of the program is on strengthening health infrastructure in rural areas specific to COVID-19 related cases.

The increase in the COVID-19 cases in the past months have pushed the government to expand health care facilities and further strengthen the infrastructure. The government’s loan guarantees would add up to the central bank’s efforts in May 2021 to ramp up credit for health care services and offer fresh loans to vaccine producers.

For banks, the Reserve Bank of India announced an on-tap liquidity opportunity worth Rs. 500 billion (US$ 6.8 billion) to expand credit to health facilities and vaccine producers until March 2022.

In May 2021, the government also announced an emergency credit program including airlines and hospitals, worth US$ 41 billion to support them combat the pandemic. That program guarantees loans worth Rs. 20 million (US$ 272.83 thousand) to clinics and hospitals to build on-site oxygen generation plants, with interest rates capped at 7.5%.

There is also further potential opportunity for boosting the overall size of that program.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.