Significant stimulus to boost industry morale
A significant stimulus of Rs.16 lakh crores, which is 7% of GDP, would help the economy to grow more than 4% in the current financial year 2020-21 and convert the U shape recovery into V shape.
This would also lakhs of job losses in the country, said Dr D K Aggarwal, President, PHD Chamber of Commerce and Industry when releasing a report on ‘Calibrated Approach to Exit from the Lockdown’ in a webinar organized on 18 Apr 2020.
This would boost boost the morale of the industry and help the economy bounce in the coming quarters, he added.
“We are optimistic that India will emerge victorious in the fight against COVID-19 by safeguarding both lives and livelihoods of its countrymen,” said Dr Aggarwal.
“So, we have to convert the U shaped recovery into a V-shaped recovery with a growth rate of 4% in the current financial year with the financial support from the Government and extra ordinary efforts by the trade and industry,” said Dr Aggarwal.
The vision must be to emerge as a strong economic power in this extremely difficult time of the pandemic, added Dr Aggarwal, calling for dedicated, well-coordinated and a strong commitment toward hard work.
Achieving the growth rate of 4% for the current financial year 2020-21, though a herculean task, is ‘definitely well’ within the potential and reach, he stressed.
Vision of 4% growth rate should target an average 5% growth in agriculture sector, 5% in industry and 5% in services in the Q2, Q3 and Q4 of 2020-21.
If Q1 of 2020-21 decelerates to less than 2%, the average for the year with improved growth in remaining quarters will support a 4% growth for the year 2020-21, according to Dr. Aggarwal
Services sector is one of the most impacted sectors in this difficult pandemic period, but the sector has immense potential to support growth as and when the economic activity is resumed.
However, manufacturing sector will at least take 3 months to come back to its normal growth trajectory.
Agriculture sector is a low hanging fruit at this juncture as we have opportunity to boost more and more growth in agriculture with lot of efforts and technology to compensate the loss from manufacturing and services sector activity, he said.
Enhanced growth of agriculture will benefit the rural segment, increase the rural income, create demand for goods and services and push the growth of manufacturing and services sector, said Dr Aggarwal. fiinews.com
