Members urged to coordinate with Central-State Govts
The ASSOCHAM is reaching out to its wide base of over 450,000 industry and trade members, urging them to continue businesses, using unconventional ways and digital infrastructure more effectively to mitigate the Coronavirus impact.
Some of the sectors like pharmaceuticals are rising up to the challenges with the support of the government, the Chamber Secretary Deepak Sood pointed out.
The chamber has called on trade members to work in close coordination with the Central and State Governments in dealing with the global pandemic of Coronavirus.
It has urged them to follow the medical and health protocols as prescribed by the authorities to be on top of the unprecedented situation, backed by strong cushions like large foreign exchange reserves, available with the policy makers.
For instance, the recent direction from the Environment Ministry to grant quick clearances for manufacturing facilities of the Active Pharmaceutical Ingredients (APIs) is a welcome move.
ASSOCHAM as part of the industry have joined in the drive to ensure that no panic is created in the Indian financial markets.
“With strong foreign exchange reserves of US$487 billion as on March 6, 2020 and narrow current account deficit of US$1.4 billion (as per the latest Q3 2019-20 data), India can confidently face the challenges of financial stability arising from global turmoil,” said Sood.
It is true that in an environment of sell-off in the global equities, investors are seeking safe haven in gold and dollar assets, the USD is rising more as asset class, rather than a currency.
Similarly, even as mismatches in US dollar liquidity have become ‘accentuated’ across the world, the RBI has moved in with a USD sell/buy swaps to the foreign exchange market, said the Chamber Secretary Deepak Sood.
RBI’s statement that it stands ready to mitigate the impact of Coronavirus on Indian economy, is ‘re-assuring’, he noted.
The RBI data for April-December, 2019-20 clearly points out that Foreign Direct Investment, considered the most stable, contributed US$32 billion for the period while the Foreign Portfolio Investors made less than half of this at US$15 billion. fiinews.com
