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Last updated: 16 Nov, 2020  

Nirmala.9.Thmb.jpg Govt's Diwali bonanza to lift growth, exports: FICCI

Nirmala Sitharaman
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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.

Of 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 crore.

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.

We 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 noteworthy.

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.

As 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.

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