Govt urged to raise investment funding for NIP
The PHD Chamber of Commerce and Industry has highlighted the need for demand creation that will have a multiplier effect on enhanced production possibilities, expansion of capital investments and overall virtuous circle of growth and development of Indian economy.
“The increased spending on infrastructure will give a multiplier effect to rejuvenate the aggregate demand in the economy and to mitigate the daunting impact of COVID-19 on the economy,” PHD Chamber President Sanjay Aggarwal said on 11 Jan 2021 in comments on the economic trends.
“The Government can consider raising investment funding for the National Infrastructure Pipeline (NIP) through borrowings from overseas markets by issuance of overseas bonds through an SPV that could act as a mega Development Financial Institution- DFI,” said Aggarwal.
“Also, there is a need to lower interest rates for consumers and businesses, lesser compliances for MSMEs vis-à-vis ease of doing business at the ground level and a lower tax regime to increase the personal disposable income of the people,” said Aggarwal in comments on going ahead with businesses that are navigating as the economic recovery turns from steady to speedy path.
The Q3 FY 2020-21 growth was seen at more than 0.1%, added the PHD Chamber.
Increase in Exports, high E-way Bills, all-time high GST Collections, strong stock market and rising railway freight in December 2020 indicate speedy economic recovery in the coming months, however, employment creation needs more focus, it said.
Aggarwal has expressed confidence in the on-going economic recovery and has appreciated the Government for pulling the economy from the low growth of (-)23.9% in Q1 FY 2020-21 to the overall growth of (-)7.7% in FY 2020-21 in the extremely difficult time of Pandemic COVID-19, in a press statement issued here today.
Out of the 10 indicators of QET (Quick Economic Trends) of economic and business activity tracked by the industry body PHDCCI, 9 have performed positive of which merchandise exports have shown a highest sequential growth of around 17% in December 2020 over the previous month.
On the back of various reforms undertaken by the Government in last 9 months, the expectations of a positive GDP growth at 0.1% to 2% in Q3 and 2% to 4% in Q4 FY 2020-21 are becoming strong with a higher growth trajectory in FY 2021-22 at more than 7.7%, said Sanjay Aggarwal.
Going by the performance of 10 economic and business indicators of QET, the performance in December 2020 is better as compared to October and November 2020, as 9 out of 10 economic and business indicators have improved in December 2020 as against 8 in October 2020 and 6 in November 2020.
The 10 economic and business indicators of QET include demand and supply side indicators along with external sector and financial indicators, said Shri Sanjay Aggarwal.
Economic and business indicators such as GST Collections, E way bills, Railway Freight, Passenger Vehicle Sales, Forex Reserves, Exports, Stock Market, Merchandise Exports and Manufacturing PMI, have shown positive sequential growth in December 2020 as compared with November 2020, he said.
“We believe that improvement in 9 economic and business indicators on sequential basis is a good indication that economy is moving in right direction and stronger economic recovery is expected in the coming month,” said Aggarwal. #economy #trade #exports #manufacturing #investment /fiinews.com
