Hyderabad, April 8 (Maxim News): Confederation of Indian Industry (CII) based on its assessment of economy and on-ground situation submitted its recommendations on an organised re-start post lock down, to Govt.
CII is fully aligned with the Government’ s view that the shutdown should be lifted as early as feasible, in a safe and calibrated manner. It is important to safeguard the macro fundamentals to ensure that the country does not suffer significant rating downgrades, and potential flight of capital. CII therefore recommends a fiscal support package, for FY21, limited to 2 per cent of the GDP, in addition to the Pradhan Mantri Garib Kalyan Yojana.
Detailing the suggestions Mr Chandrajit Banerjee, Director General CII, said, “The Government should extend additional support to the people at the bottom of the pyramid thorough cash transfers. Support to industry could come through the banking system.” Explaining the rationale, he added “Our estimates are that the economy would need a credit expansion of 14-15 per cent. Additionally, support through banks would allow the government a leverage of 5-6 times, mitigating the fiscal impact”. The support should include working capital enhancement and support for payment of wages to all industry and special re-construction terms loans for MSMEs and the stressed sectors
CII recommendations also include measures on issues related to health, safety, logistics, migrant workers and coordination between centre and states. (Maxim News)