Chandigarh

CII MAKES SUGGESTIONS ON LIFTING THE SHUTDOWN IN A SAFE AND CALIBRATED MANNER

April 08, 2020 04:09 PM

Chandigarh (Face2News)

Confederation of Indian Industry (CII) based on its assessment of the economy and the on-ground situation submitted its recommendations on an organised re-start post the lock down, to the Government today. 

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. 

EXTEND CASH TRANSFERS THROUGH JAM ACCOUNTS, SUPPORT INDUSTRY THROUGH BANKS,IMIT THE ECONOMIC PACKAGE TO AN ADDITIONAL 2 PER CENT OF THE GDP,ADDRESS ISSUES RELATED TO HEALTH, SAFETY, LOGISTICS, MIGRANT WORKERS AND COORDINATION BETWEEN CENTRE AND STATES

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. 

 

Have something to say? Post your comment
Copyright © 2017, Face 2 News, All rights reserved. Terms & Conditions Privacy Policy Disclaimers