Warning of massive job losses, the Federation of Indian Chambers of Commerce and Industry (FICCI) President Sangita Reddy has expressed a critical and immediate need for a significant stimulus of Rs 9 lakh crore to 10 lakh crore or four to five per cent of the GDP to stimulate demand and supply for averting a long-term economic slowdown.
FICCI President also called for interest-free and collateral-free loans to MSME companies (turnover of less than Rs 500 crore) for an up to 12 months period depending on the sector to enable them to cover fixed costs, salaries and other operational expenses.
Reddy further said that the problem being faced is largely that of liquidity and immediate release of moneys stuck in refunds and other government payments to the tune of Rs 2.5 lakh crore will immensely help the situation. This may have already been provided for in the budget. An additional sum of Rs 1 lakh crore over and above the PM Gareeb Kalyan Scheme must be earmarked and transferred to states to supplement their efforts to cater to the immediate needs of the poor and informal sector workers.
Besides, Sangita Reddy noted that all recovery is dependent on consumption stimulus and survival of businesses itself. A special package is required for airlines, airport developers, hospitality and tourism, retail and healthcare sectors. For getting the industry back on track and moving, she said there needs to be a robust plan for phased opening up of the economy and re-starting growth.