Businesses looking forward to interest subvention: Dollar

Welcoming the ₹20 lakh crore economic stimulus package announced by Prime Minister Narendra Modi, Gupta said it will give a major boost to the economy. The package aimed at making India atmanirbhar (self-reliant) is of ₹20 lakh crore, which is roughly equivalent to 10 per cent of India's GDP.

"Today, we are fighting a global pandemic, one which is not only threatening the lives of the people but also having an impact on the economy. The lockdowns have brought the revenues and incomes of corporates and families to almost a halt.  The cash flow has become a major concern for both corporates and individuals. The Central Government had been announcing packages and measures to help the poor and business community to fight the current pandemic economic consequences," Gupta said in a statement.

Commenting on the first set of measures announced by finance minister Nirmala Sitharaman, he said, the announcement has been focused on increasing the liquidity in the system by supporting the cottage industry, MSMEs, NBFCs, industries and middle-class people. "This will act as a booster for much-required cash flow in the system. However, these additional flow of funds in the system will add on to the interest burden to the businesses. The business community is looking forward to interest subvention that would help them to ease their interest cost to the business."

In the light of the new definition of MSMEs, Gupta said, the industries are also eagerly waiting for the extension of Government contribution to EPF without any cap on number of workers or their salary slab. "The salary and interest contribute a major part of the total expenses of any business and the additional support in these areas would help the businesses and industries in bearing the additional cost burden, as they are having almost zero revenue."

Fibre2Fashion News Desk (RKS)