India Inc stands by lockdown extension; seeks stimulus package to rebuild economy

The catastrophic effect of the lockdown on the overall economy and livelihoods of lakhs of migrant workers triggered severe concerns following which a number of state chief ministers in their video conference with Modi on Saturday sought some sort of relaxation for a number of sectors.

Late last month, the government announced a Rs 1.7 lakh crore package aimed at providing relief to those hit hard by the lockdown as well as an insurance cover for healthcare professionals handling coronavirus-infected patients.

Estimates show that India may be losing close to Rs 40,000 crore daily due to the national lockdown with an estimated loss amounting to Rs 7-8 lakh crore during the past 21 days,” said FICCI President Sangita Reddy.

Further, it is also expected that close to 40 million jobs are at risk during the period April-Sept 2020. Hence, an urgent relief package is also critical, she said.
She observed that the Prime Minister’s directions on graded opening will help start some production activity to ensure that as soon as lockdown opens, there are no shortages faced.
CII Director General Chandrajit Banerjee said the COVID-19 curve trajectory, as of now, required a fitting containment response and Prime Minister’s decision for continuation of the lockdown is necessary to avert a larger humanitarian crisis.

“Prime Minister has also provided a guidance on exit from the lockdown after April 20, which helps industry plan better. The extension gives the government adequate preparation time to organise an orderly and safe restart of the economy as and when health conditions permit. Industry too can devise its strategies for commencing operations accordingly during this extension period,” Banerjee said.

Assocham Secretary General Deepak Sood said the situation is quite challenging, but somehow, the industry is managing to stay afloat and pay salaries and other essential disbursements in the supply chain.
“However, the situation may become unsustainable in the coming weeks, making it extremely important for the government to announce an effective and sizeable package for the economy,” he stated.
According to PHD Chamber President D K Aggarwal, a significant stimulus of 7 percent of GDP would help the economy to grow at around 5 percent in the current financial year 2020-21, rejuvenate the businesses and refuel the economic growth trajectory of the country.
IT industry body Nasscom said the extension announcement by the government will help India to build on the containment strategy of the last three weeks and strengthen our readiness to support the post lockdown phase.

“We are also happy to note the relaxation of restrictions in green zones and hope the government will also announce the economic stimulus packages soon so that we can start focusing on rebuilding the economy. Saving lives and livelihood has to go hand in hand, ” it added.

Ratul Puri, Chairman Hindustan Power, said while lockdown and social distancing are the only two remedies for fighting the pandemic, there is a widespread impact on the businesses and the overall economy.
“Extension of lockdown is a well thought out and much-needed plan in wake of the threats posed by COVID-19. Prime Minister’s decision to monitor the effectiveness of implementation and then gradually offer relaxations post April 20 must be welcomed,” said Naveen Jindal, Chairman, Jindal Steel & Power Limited.