The Confederation of Indian Industry (CII) on Tuesday said it hopes the government will quickly announce measures to support Indian industries including Medium and Small Scale Enterprises (MSMEs).
CII representative told India Today TV that it expects an announcement on relief measures for MSMEs soon. MSMEs have been severely affected by the nationwide lockdown and have already sought help from the government.
In its fresh suggestion, CII has asked the government to enhance working capital, extend moratorium on loans along with wage support and immediately release of government dues.
Besides, the body has also asked the government to provide, additional funding through MUDRA and other MSME-focussed banks.
The industry body also said the extension provides the government with adequate time to organise an “orderly and safe restart” of the economy.
Detailing the suggestions, Chandrajit Banerjee, Director General, CII said, “With limited resources, MSMEs do not have the capacity to withstand massive shocks like COVID 19. In addition, many MSMEs are an important part of larger supply chains.”
“The health of these MSMEs have a bearing on the entire supply chain, including the large corporates. Therefore, special, immediate and substantive support measures are required to see the MSMEs through this crisis.”
India’s economy suffering one of the worst economic slowdowns in its history, in line with the global destruction caused by the Covid-19 pandemic.
Analysts said in a report that India’s 21-day lockdown, which was supposed to end on April 14, has resulted in losses worth Rs 7-8 lakh crore. With the lockdown extended further, government support seems necessary to sustain small businesses.
The next challenge for the government, according to CII, will be restarting the economy.
Though experts predict that reviving be the economy will pose a challenge like never before, CII has asked the government to offer a concrete set of guidelines on the lockdown exit plan after April 20.
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