ASSOCHAM seeks stimulus of $300 billion

In order to overcome the Coronavirus related recession that is threatening the global economy, industry body ASSOCHAM has sought a relief package of $200-$300 billion. It has shared a 16-point agenda to tackle the current economic turmoil. Secretary-General, Deepak Sood, said that in keeping up with most economies of the world to institute stimulus measures with 10 per cent of the GDP, the Indian economy would need a transfusion of over $200 billion with an ability to go up to $300 billion, over the next 12-18 months. The PHD Chamber of commerce and Industry has also suggested some short-term and long-term points to the government to mitigate the adverse impact of coronavirus on economy, trade and industry. It has suggested that the funds should be infused with three objectives including providing assistance to employees and labor through direct transfers and through employers. Secondly, the government must ensure that the companies have enough cash flow to survive the downturn. Lastly, demand must be stimulated to revive the economy. Among the suggestions to the Finance Ministry, the industry body has demanded that the government must allow “one-time loan restructuring to all corporates, assuming a principal repayment start date moving upwards from March 2021. It also recommended that the NCLT provisions be held in abeyance for 6 months and RBI further announce a reduction of interest rate/repo-rate by another 100 bps. As hospitality, aviation, tourism, transport, holiday operators, cinema owners have been especially hit by the lockdown, it has also sought a 12-month interest waiver and a 12-month moratorium on principal repayment. Its other suggestions included increase of 25% to all standard loan accounts automatically, and 10% rebate in personal tax. Interdependency of the salaried and working-class with that of the businesses is the key parameter and, therefore, it is essential for the country to revive the entire business eco-system that keeps them employed and businesses unburdened, the Secretary-General added.