Multi-sectoral package for Economic growth
Context
Recently, the Union Cabinet has approved a multi-sectoral package worth ₹22,791 crore that covers key sectors such as digital payments, infrastructure, agriculture, and dairy development.
- This initiative primarily aims to enhance financial inclusion, boost economic growth, and strengthen regional connectivity.
Relevance:
GS-02 (Government policies and interventions)
Key Highlights of the Cabinet’s Multi-Sectoral Package
- Boosting Digital Payments
- ₹1,500 crore allocated to incentivise low-value UPI (Person-to-Merchant) transactions under the Zero Merchant Discount Rate Policy for FY25.
- A 0.15% incentive for transactions below₹2,000, supporting small merchants with digital transactions under ₹50,000 per month.
- Incentives will be disbursed to acquiring banks, which will distribute them among issuer banks, payment service providers, and app providers.
- Infrastructure Development
- Approval for the Chowk-Pagote six-lane highway in Maharashtra under PM Gati Shakti, improving connectivity to Jawaharlal Nehru Port Trust (JNPT) and boosting logistics efficiency.
- Strengthening Agricultural and Dairy Sectors
- Namrup-IV Urea Plant in Assam: ₹10,601 crore sanctioned under the ‘Act East’ policy to enhance urea production in the Northeast, ensuring self-sufficiency and potential exports to Southeast Asia.
- Revised National Programme for Dairy Development: ₹2,970 crore allocated to set up 10,000 dairy cooperatives, creating 3.2 lakh jobs, with a focus on women’s employment.
- Rashtriya Gokul Mission (2021-26): Revised budget of ₹3,400 crore to promote high-yield indigenous cattle breeds, boosting milk production and rural livelihoods.
Conclusion:
This package reflects the government’s focus on digital financial inclusion, self-reliance in agriculture, infrastructure expansion, and rural economic development.
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