CII President requests government to provide Rs 3 lakh crore stimulus package

At the press conference, the CII announced that it will be setting up 3 national centres in the areas of Artificial Intelligence, Design and IP creation & Technology Management.  

The Confederation of Indian Industries(CII) wants the government to give out a stimulus package of Rs 3 lakh crore or about 1.3% of India’s GDP in order to revive the economy battered by two waves of the pandemic. The suggestion, among many others, was made by TV Narendran who is the new President of the CII.

In his interaction with the media, Narendran said that the government can take the additional burden of such a package, which would expand the fiscal deficit to 8% and bring in additional spending worth Rs 2.6 lakh crore. He suggested the creation of a national pandemic fund which would minimise job and business losses in case of a future pandemic.

In order to increase demand in the country, the CII president recommended the transfer of cash to Jan Dhan accounts and an increase in expenditure on the MGNREGA scheme. “impact of two waves on incomes, livelihoods and customer sentiments coupled with an increase in household medical expenses, are likely to have an impact on consumer demand for some time,” he added. In order to provide relief to people facing a financial crisis, Narendran requested the government to reduce the rates of excise duty on fuel, GST and direct taxes.

For the loss-making aviation industry, he recommended bringing aviation turbine fuel under the ambit of GST.

Recognizing that public sector banks are the biggest source of credit for the industry, TV Narendran called for the government to recapitulate the banks to the tune of Rs 20,000 crore in order to ensure they are able to meet the loan requirements and minimise NPAs.

Among other measures, he called for encouraging the Micro, small and medium enterprises(MSMEs) by expanding the corpus of the credit guarantee scheme ECLGS to Rs 5 lakh crore. The government had recently expanded the ambit of ECLGS and the CII now wants retail and machine tool sectors to also be included.

Talking of the momentary policy, Narendran called on the central bank to not increase interest rates. RBI governor Shaktikanta Das had kept interest rates unchanged in the last monetary policy review.

At the press conference, the CII also announced that it will be setting up 3 national centres in the areas of Artificial Intelligence, Design and IP creation & Technology Management.

 

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