- Sunday, February 23, 2025
By: Shubham Ghosh
INDUSTRY players and exporters on Monday (28) welcomed the slew of measures that the Indian finance minister Nirmala Sitharaman came up with as part of an economic revival package of Rs 6.29 lakh crore ($85 billion) saying it will encourage growth and address the severe cash crunch flow that businesses have faced in times of the Covid-19 pandemic.
Of the measures that Sitharaman announced were a credit guarantee scheme of Rs 1.1 lakh crore ($15 billion) for improving health infrastructure and enhancing the limit under the Emergency Credit Line Guarantee Scheme by 50 per cent to Rs 4.5 lakh crore ($60.5 billion) for the micro, small and medium enterprises sector facing liquidity crunch.
ALSO READ: India finance minister announces $85 billion stimulus to revive economy
PHD Chamber of Commerce and Industry said the measures announced will lead to a broad-based economic recovery by means of enhanced demand, private investments, exports, manufacturing competitiveness, increased agricultural productivity and strong build-up of healthcare infrastructure in non-metropolitan cities. The measures “will push the economic growth trajectory on high road sooner than later,” the chamber said.
The Confederation of Indian Industry said the measures announced by the finance minister are expected to address the problem of severe cash flow distress caused by business disruptions because of lockdown imposed during the second wave of the pandemic.
“The additional tranche of economic revival measures with Rs 6.29 lakh crore spend announced will impart a significant impetus to growth this year,” it said.
Former president of Federation for Indian Exports Organisations (FIEO) S K Saraf said the measures would revive the economic growth and boost exports. “Insurance cover to ECGC (Export Credit Guarantee Corporation of India) will give a big boost to export sector and comfort to the exporting community in this crisis period,” he said.
‘It was the need of the hour’
Assocham said the steps are aimed at providing relief to the sectors hit hard by the Covid-19 pandemic and the package can be termed as the “lifeline dose’” to a wide number of sectors. Calling it the need of the hour, industry body Ficci said the direct support offered to the tourism and travel sector was much needed as it has been severely hit in the first two waves of the pandemic and continues to face heat due to the uncertainty that prevails.
Vikash Agarwal, president of Indian Chamber of Commerce (ICC) said this intervention will provide a boost to sectors like health, micro finance, tourism, fertilizer, export, digital connectivity, and electronics.
