Globally, the COVID-19 pandemic has created unknown difficulties, affecting all spheres of society. However, the pandemic impacted the economically vulnerable ones the most. Crores of Indians experienced financial difficulty due to lockdowns and disruptions to their means of subsistence. But in the middle of these difficult circumstances, the government, led by Prime Minister Narendra Modi, launched several programmes and support systems that assisted underprivileged groups. The government led by Prime Minister Modi made a comprehensive effort to combat the COVID-19 pandemic, offering free vaccinations, meals, and special economic packages.
The Indian government, under the leadership of PM Modi, recognized that during the pandemic, it was crucial to address the socioeconomic effects on people. Launched in March 2020, the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) was among the first and most prominent of the Modi government's schemes. Crores of Indians nationwide benefitted from the PMGKAY's free food grain distribution scheme. To ensure that no one went hungry during the lockdown, the government distributed extra food grains under the Public Distribution System (PDS). This action minimized the risk while also addressing acute nutritional needs. Even after the pandemic, the government decided to continue this scheme, and now, more than 80 crore people are enjoying the benefit of free rations under this scheme.
The government announced several initiatives to help those in dire need of quick relief, such as cash transfers and insurance coverage under the Pradhan Mantri Garib Kalyan package. The government understood the pandemic's graveness and announced an Insurance scheme for health workers fighting COVID-19 in Government Hospitals and Health Care Centres. Under this, approximately 22 lakh health workers were provided insurance coverage to ensure a safety net in the pandemic. In addition, under PM Garib Kalyan Yojana, MNREGA wages were increased by Rs. 20 from 1 April 2020. Supports were provided to SHGs.
In addition, the government stated that farmers, elderly persons, and women beneficiaries would get direct cash transfers into their Jan Dhan accounts. The Ministry of Rural Development disbursed a one-time ex-gratia payment of Rs. 500 per month for three months to women with Jan Dhan Accounts. Furthermore, current National Social Assistance Programme (NSAP) recipients were given Rs. 1000 in two instalments; in April and May 2020, Rs. 2814.50 crore was distributed to the States and UTs to assist 282 lakh people, including widows, older people and Divyangjan. These transfers provided the most vulnerable people the vital financial support they required to meet their necessities and deal with the economic impact of the pandemic.
Another significant move was the government's extension of the social security system under the Aatmanirbhar Bharat Rozgar Yojana (ABRY). This scheme of the Modi government intended to boost the economy in rural areas and provide employment possibilities for the impoverished, mainly affected by the lockdowns induced by the pandemic. Implemented through the Employees Provident Fund Organisation (EPFO), this scheme alleviated financial strain on employers across sectors, including MSMEs, fostering increased employment. Under ABRY, the Government of India subsidizes employees' (12% of wages) and employers' (12% of wages) contributions for two years, or solely employees' contributions, contingent on EPFO-registered establishments' employment levels. In addition, the PM-SVANidhi Scheme enabled street vendors to access collateral-free working capital loans of up to Rs.10,000 for one year, aiding them in restarting their businesses.
Various regulatory and developmental measures were put into place by the Narendra Modi government to address the financial burden brought on by COVID-19 immediately. To ensure that financial markets and institutions continued to operate smoothly in the face of COVID-19 disruptions, these initiatives included (i) significantly increasing system liquidity, (ii) improving monetary transmission to facilitate easier bank credit flows, (iii) easing repayment obligations and improving access to working capital to alleviate financial pressures; and (iv) improving market functioning in response to increased volatility observed during the pandemic. In addition, a host of significant policy announcements were made by the PM Modi-led government, such as the waiver of late fees, reduction in interest rates, and announcement of a relief package of Rs. 6,28,993 crore. Moreover, specific packages were announced for MSMEs.
To tackle the COVID-19 problem, PM Modi-led government responded swiftly, imposing lockdowns around the country, stepping up testing and immunization campaigns, and offering financial aid. The aggressive stance taken by the government has attempted to slow the virus's spread and protect public health, ranging from the implementation of stringent containment measures to the prompt procurement of vaccines and improvement of healthcare facilities. The government has shielded people by giving them access to free vaccination. Adequate and effective measures were taken to curb the impact of nationwide lockdowns. More than 220 crore COVID-19 vaccines were administered nationwide with continuous efforts from the government.
The COVID-19 pandemic posed tremendous challenges for India's poor, escalating already-existing socioeconomic inequalities. The government, led by Prime Minister Modi, has introduced several programmes and support structures to alleviate the misery of the economically weaker sections. Millions of vulnerable households countrywide received instant relief and help owing to a considerable measure taken up by the government.
