Industry wants cash in the hands of the poor, more policy reform in sectors such as tourism, automotives and aviation
Industry needs to quickly resume operations and increase investments to ride out the Covid-19-induced economic slowdown, Finance Minister Nirmala Sitharaman told industrialists on Wednesday. But it may be easier said than done, said India Inc, highlighting low levels of demand and several challenges being faced by businesses, big and small.
Sitharaman’s virtual conference with senior members of the Confederation of Indian Industry (CII) was designed to gauge industry’s mood on the recent economic package, a senior government official said. The minister was accompanied by all five secretaries from the finance ministry along with the Chief Economic Advisor. Corporate Affairs Secretary Injeti Srinivas also joined in.
CII members flagged the lack of demand, suggesting direct cash transmission into the hands of the poor needs to be stepped up. There is need for further policy reform in certain sectors, such as tourism, automotives and aviation, they said. Discussions need to be undertaken to protect jobs, increase demand, and ensure survival of large businesses which face unprecedented challenges, the CII said.
“While a lot has been announced in the package, it was pointed out that more needs to be done for sectors that have been left out, including large corporations and exports. Targeted policy changes need to be brought out quickly for these, and then industry can decide on how to deal with the crisis going forward,” said an industry member who attended the meeting.
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