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At first meet, PM Modi’s Cabinet clears 3 poll promises to farmers, traders.
LyrArc Article Gist
At the first meeting of the new cabinet the Modi government extends the Rs. 6000 per year guaranteed income for farmers with less than 2 hectares of land to all farmers in India. The program was announced earlier this year to help farmers facing low crop prices and covered 125 million farmers. It now covers 145 million farmers in India.
Additional steps to boost rural consumption are pension schemes for farmers and traders. The government will set up contributory pension schemes for farmers and traders above the age of 60. Fifty million traders are expected to join in the next 3 years. All traders, shopkeepers, self employed in shops with sales of less than 15 million rupees and between the age of 18-40 years are eligible to join this pension scheme.
As India faces lower demand from existing middle class because of saturation levels in purchases of a whole range of products it is necessary to spur growth by creating a new class of consumers in smaller towns and cities.
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