New Delhi, January 14: In order to reach out to small traders and exporters ahead of the 2019 Lok Sabha elections, Prime Minister Narendra Modi led government is considering several schemes for them. There is a sense of resentment among small businessmen who were affected by demonetisation and the launch of goods and services tax (GST). The government is trying to placate the sentiment before general elections.
According to a report, the government is considering insurance cover, cashbacks for digital payments and subsidies for small traders. It may also announce financial aid for traders to buy computers and digitisation of businesses. "The government will pay the premium for traders who are registered under GST... The other steps are expected to upgrade and modernise the existing retail trade," a source in the government told TOI. After Quota, Modi Government May Announce Rs 2500 Basic Income For Poor, Sops For Farmers.
The proposed measures for small traders have been discussed so far at the level of cabinet secretary and the department of industrial policy and promotion. For exporters, the Modi government is likely to announce a new incentive scheme. The commerce department has worked out on the proposal under which the current incentive scheme through Merchandise Exports from India Scheme will only be available for farm exports, said the report. GST Exemption Limit Increased to Rs 40 Lakh, Other Decisions Taken at Council Meeting.
The proposed incentive scheme would also address the concerns of countries such as the US that have dragged India to the World Trade Organisation. The government is also working to provide incentives for traders after tightening foreign direct investment rules for e-commerce. These schemes could be announced in the upcoming budget session starting January 31. The government is also exploring the possibility of a universal basic income (UBI) for those below the poverty line (BPL).