CII suggests measures on lifting the shutdown in a safe manner

Our Bureau New Delhi | Updated on April 08, 2020 Published on April 08, 2020

To lift the lockdown in a safe and calibrated manner, the Confederation of Indian Industry (CII) has suggested the need for fiscal support package for FY21, limited to 2 per cent of the GDP, in addition to the Pradhan Mantri Garib Kalyan Yojana.

The report, titled Towards an Organised, Safe and Sustainable Re-start of the Economy, mentioned the need to support the enterprises through banks and additional reconstruction term loans to MSMEs and stressed sectors with a government guarantee on default, up to 20 per cent.

“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. Our estimates are that the economy would need a credit expansion of 14-15 per cent,” said Chandrajit Banerjee, Director-General, CII.

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, he added.

The CII recommendations also included measures on issues related to health, safety, logistics, migrant workers and coordination between the Centre and States.

It suggested setting up an empowered group of ministers at the Centre to plan, review and address implementation challenges. Also, forming of inter-departmental taskforces, led by the respective Chief Secretaries at the State level.

On migrant workers, it mentioned that to get them back, the government should undertake an aggressive ‘messaging’ campaign on the preparedness of the government and the industry for the restart and facilitate their return by arranging special transport.

Published on April 08, 2020

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