Demand generation needed, says Aggarwal
The Government is closely monitoring the transmission of repo rate cut by the Banking Sector and recognise efforts of wealth creators in scripting India’s growth story, Finance Minister Nirmala Sitharaman has told the PHD Chamber of Commerce and Industry.
The Government has always recognised the importance of wealth creators as they generate employment opportunities and utilise resources in an optimal manner for promoting the socio-economic development in the country, she said during an interaction with the Managing Committee Members of PHD Chamber through video conferencing on 19 June 2020.
“We are closely monitoring the situation in consultation with banks so that relief measures announced by the Government are effectively percolated at ground levels especially the transmission of repo rate cuts to consumers in terms of reduced interest rates,” said Sitharaman.
The Ministry is closely watching the developments in the disbursement of loans under the provision of Rs.3 lakh crore collateral-free automatic loans for businesses to mitigate the daunting impact of pandemic COVID-19 on trade and industry.
The Government has always focused on Minimum Government and Maximum Governance with a special focus on addressing challenges faced by Industry and promote ease of doing business, she stressed.
The Government has always provided a helping hand without differentiation to all industry stakeholders especially to MSMEs.
While appreciating the significant reforms announced by the Government, PHD Chamber President Dr D K Aggarwal noted that the Rs.20.97 lakh crore stimulus package is not only the monetary and financial stimulus but also contains the game-changing reforms to take India to the next high.
But he called for a one-time restructuring of the loans without affecting the classification for the severely impacted sectors such as tourism, aviation, entertainment, real estate, automobile, among others is the need of the hour.
Dr Aggarwal suggested that there may be a formal communication from the Government to the banking sector to remove the fears from the minds of bankers so that the bank officials are able to sanction and disburse loans to the trade and industry without any fear.
Criminal proceedings should not be considered if some business entity turns into NPA because of some genuine reason, added Dr Aggarwal.
There is a need for generation of demand immediately through enhanced government spending and simultaneously increase the competitiveness of the domestic industry with fast track labour, legal and land reforms to make India an attractive investment destination, said Dr Aggarwal, elaborating the industry needs.
The Finance Minister addressed the concerns of the PHD Chamber members and noted suggestions on various aspects of the economy, trade and industry. fiinews.com
