Union Cabinet Approves ₹2.88-Lakh Crore Economic Measures to Boost Growth

Union Cabinet economic measures

Union Cabinet Approves Economic Measures Worth Over ₹2.88-Lakh Crore

Overview of Economic Decisions

The Union Cabinet has sanctioned economic measures totaling ₹2.88-lakh crore. These decisions, announced after the allocation of portfolios to Union Ministers in the Modi government’s third term, aim to enhance various sectors and stimulate economic growth.

MSP Hike for Kharif Crops

One of the major decisions includes raising the Minimum Support Price (MSP) for 14 Kharif crops for the 2024-25 marketing season. The hikes range from ₹117 to ₹983 per quintal, benefiting farmers by approximately ₹2-lakh crore based on procurement data. The government has considered inflation impacts, asserting that the increase will not significantly affect inflation rates.

Varanasi Airport Expansion

The Cabinet has approved an investment of over ₹2,800 crore for the expansion of Varanasi airport. This project includes constructing a new terminal building, extending the apron and runway, and adding a parallel taxi track. The expansion aims to increase the airport’s capacity from 3.9 million to 9.9 million passengers per annum (MPPA), reflecting Varanasi’s cultural heritage in its design.

Development of Vadhavan Port

A new major port will be developed at Vadhavan in Maharashtra’s Palghar District, with a project cost of ₹76,220 crore. This Greenfield deep draft port is expected to become one of the top 10 ports globally upon completion, providing an all-weather operational capacity.

Boosting Renewable Energy

The Cabinet has approved the Viability Gap Funding (VGF) scheme for offshore wind energy projects with an outlay of ₹7,453 crore. This includes ₹6,853 crore for installing and commissioning 1 GW of offshore wind energy projects and ₹600 crore for upgrading ports to meet logistics needs.

National Forensic Infrastructure Enhancement Scheme (NFIES)

To support the implementation of new criminal laws, the Cabinet has sanctioned the “National Forensic Infrastructure Enhancement Scheme” with a financial outlay of ₹2,254.43 crore for 2024-25 to 2028-29. The Ministry of Home Affairs will provision this funding from its budget.

Production-Linked Incentives

The Cabinet has approved ₹2 lakh crore in production-linked incentives for 10 sectors, including white goods manufacturing, pharmaceuticals, specialized steel, auto, telecom, textiles, food products, solar photovoltaic, and cell battery sectors. This initiative aims to boost domestic manufacturing and economic growth.

Union Cabinet economic measures
Union Cabinet economic measures

Why This News is Important

Impact on Farmers

The MSP hike for Kharif crops significantly impacts the agricultural sector, potentially boosting farmers’ income and ensuring better market stability for essential crops. This decision aligns with the government’s objective to support farmers and enhance rural prosperity.

Infrastructure Development

The expansion of Varanasi airport and the development of Vadhavan port are crucial for improving transportation infrastructure in India. Enhanced airport capacity will support tourism and business travel, while a new major port will bolster India’s maritime trade capabilities, essential for economic growth.

Renewable Energy Push

The approval of the VGF scheme for offshore wind energy projects highlights India’s commitment to sustainable energy. This move is vital for meeting renewable energy targets and reducing dependence on fossil fuels, contributing to environmental conservation and energy security.

Forensic Infrastructure Enhancement

The National Forensic Infrastructure Enhancement Scheme is significant for law enforcement, providing essential resources for implementing new criminal laws. Enhanced forensic infrastructure will aid in more efficient crime investigation and legal processes, strengthening the justice system.

Economic Stimulus

Production-linked incentives for multiple sectors aim to stimulate domestic manufacturing, fostering job creation, and technological advancement. This initiative is expected to enhance India’s global competitiveness and drive economic growth in key industries.

Historical Context

Previous Economic Measures

The Modi government has consistently introduced economic measures to boost various sectors. Previous initiatives include the Atmanirbhar Bharat Abhiyan, which focused on self-reliance by promoting domestic manufacturing and reducing import dependence. The recent decisions follow this trajectory, aiming to stimulate the economy further.

Development of Key Infrastructure

India has a history of investing in critical infrastructure to support economic growth. The development of major ports, airports, and renewable energy projects has been a part of national strategies to enhance trade, transportation, and sustainable energy. These projects are in line with India’s long-term infrastructure development goals.

Key Takeaways from “Union Cabinet Approves Economic Measures Worth Over ₹2.88-Lakh Crore”

Serial NumberKey Takeaway
1MSP hike for 14 Kharif crops, benefiting farmers by ₹2-lakh crore.
2₹2,800 crore investment approved for Varanasi airport expansion.
3Development of a new major port at Vadhavan with a project cost of ₹76,220 crore.
4Approval of VGF scheme for offshore wind energy projects with an outlay of ₹7,453 crore.
5National Forensic Infrastructure Enhancement Scheme sanctioned with a financial outlay of ₹2,254.43 crore.
Union Cabinet economic measures

Important FAQs for Students from this News

What is the significance of the MSP hike for Kharif crops?

The MSP hike for Kharif crops is significant because it directly benefits farmers by ensuring they receive a fair price for their produce, potentially leading to increased agricultural income and market stability.

How will the Varanasi airport expansion impact the region?

The expansion of Varanasi airport will significantly boost the region’s connectivity, increase passenger capacity from 3.9 million to 9.9 million per annum, and promote tourism and economic activities in Varanasi.

What are the expected benefits of developing Vadhavan Port?

The development of Vadhavan Port is expected to make it one of the top 10 ports globally, enhancing India’s maritime trade capabilities and providing an all-weather operational capacity, crucial for economic growth.

How does the VGF scheme support offshore wind energy projects?

The VGF scheme provides financial support for installing and commissioning offshore wind energy projects, promoting renewable energy development and helping India meet its sustainability targets.

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