CII seeks ₹15 lakh crore as immediate stimulus package
#GS3 #Economy #SlowDown
The Confederation of Indian Industry (CII) has urged the government to announce an immediate stimulus package of ₹15 lakh crore, which translates into 7.5% of GDP, with COVID-19 crippling the Indian economy.
- With economic activities being restricted for over 50 days now, the negative impact on the economy is expected to be even more significant than what we had earlier anticipated.
- This needs to be offset by a large fiscal stimulus so that jobs and livelihoods are protected. CII recommends the government to announce an immediate stimulus package of ₹15 lakh crore, which translates into 7.5% of GDP.
- The broad elements of the stimulus include cash transfers amounting to ₹2 lakh crore to JAM account holders.
- Further, in order to provide enterprises the immediate support to pay salaries to its workers and avoid any job losses, CII has suggested a provision of ₹2 lakh crore for additional working capital limits to be provided by banks, equivalent to April-June wage bill of the borrowers, backed by a government guarantee, at 4-5% interest.
