India Inc Welcomes Govt Stimulus to Boost Demand
India Inc on Monday cheered Finance Minister Nirmala Sitharaman’s announcement of payment of cash in lieu of LTC and Rs 10,000 festival advance to government employees, saying these measures will boost demand while instilling a “feel good” factor in the people and energize growth.
Sitharaman also announced additional capital spending and Rs 12,000 crore, 50-year interest-free loan to states to boost the economy that has been battered by the pandemic and the resulting lockdown. Central public sector enterprises and banks will also follow the cue and give cash in place of leave travel concession (LTC) as travelling during the pandemic is near to impossible.
The measures will stimulate consumer demand, boost capital expenditure and push the economic growth trajectory on pre-COVID levels in the coming quarters.
CII Director General Chandrajit Banerjee said the finance minister’s announcement on boosting demand through a two-pronged strategy will provide a huge impetus to spending, both by consumers and governments, which in turn will accelerate economic activity. The measures will also be a significant feel good factor for the people who have been going through some tough and challenging times due to the pandemic.”
FICCI President Sangita Reddy said, “Government has delivered in a very innovative and fiscally prudent way to boost demand in the economy. The set of measures announced today for supporting consumption and investment demand would energize growth over the remaining part of the year The overall impact of these measures will be to the tune of Rs 1 lakh crore and this is sizable.”
Sanjay Aggarwal, President, PHD Chamber of Commerce and Industry, said calibrated and meaningful measures will have a multiplier effect on trade, industry and economy.