SME Times News Bureau | 16 Nov, 2020
Commenting on the series of measures announced by the Finance Minister
today to further stimulate the economy, Sangita Reddy, President,
FICCI said "We saw a powerful multi-sectoral boost coming in from
the government recently.
The clear focus on housing, infrastructure and construction shows
that the government wants to leverage the huge multiplier impact these sectors
have to rev up the economy that is already showing multiple signs of recovery.
FICCI compliments the Finance Minister for this huge Diwali
bonanza that will lift growth, employment, exports and make India part of the
global value chains.
“Today's package contained announcements for the stressed sectors,
the sunrise sectors and other significant areas that will play a crucial role
in making India strong and self-reliant," Reddy said.
the dozen announcements that we heard today, perhaps the most significant was
the one relating to the production linked incentive scheme wherein 10 new
champion sectors have been added with an outlay to the tune of Rs. 1.46 lakh
Building manufacturing ecosystem, especially in areas where we
have large dependence on imports, requires a long-term strategy. Government and
industry are working in tandem towards developing that strategy and
implementing it and the PLI scheme is a great example of that, added Reddy.
have also seen how the ECLGS scheme has benefitted scores of MSME units and
individuals in resurrecting their businesses and coming back to life. FICCI had
suggested that the scheme requires an extension of timelines as many companies
are still scouting for funds.
Additionally, the inclusion of the stressed sectors within the
ambit of the scheme with a specific call-out to the healthcare sector is
Sectors such as aviation, hospitality, tourism, healthcare etc.
have been reeling under tremendous pressure. Given their employment potential
and their role in shaping economic recovery and regional development, these
sectors needed special support, which eventually came today, said Reddy.
growth recovers, we shall see employment numbers also picking up. However, even
as we wait for the full normalcy to return, government has laid down a
framework for promoting jobs and encouraging companies to consider re-hiring of
workers who may have lost their jobs during the lockdown period.
The contribution to PF on behalf of employers and employees is a
good incentive mechanism. FICCI would only urge the government consider the
ceiling wage level of Rs. 15000 for applicability of this as in many parts of
the country the average wage levels are higher, Reddy noted.