India Inc on Tuesday said Prime Minister Narendra Modi's announcement of a Rs20 lakh crore stimulus package was the "need of the hour" as it will pave the way for post pandemic recovery and unleash the next wave of economic growth.
In his speech, Modi announced that the total stimulus India is marshalling together to limit the impact of the COVID-19 crisis on the economy will be a little less than 10 per cent of the GDP and Finance Minister Nirmala Sitharaman will be announcing the exact details soon.
Industry bodies said the Make In India flagship will emerge as a key catalyst for attracting new investment, driven by much needed bold reforms in the areas of land, labour and liquidity.
"We appreciate that the Prime Minister spoke about the areas of land, labour, liquidity and simplification of laws which are the key challenges of the economy. Reforms in these four areas will truly unleash the next wave of economic growth within this crisis situation," CII Director General Chandrajit Banerjee said.
Ficci President Sangita Reddy said the strengthening of the five pillars economy, infrastructure, system, demography and demand will pave the way for India returning to a higher sustained growth path again.
"We expect that the contours of the package to be announced by Finance Minister Nirmala Sitharaman will address the needs of the poor and needy, MSMEs and also the industry and common man on the whole. The stress on land, labour and liquidity is what is required to make India self-reliant," she added.
The main focus of the Prime Minister's 33-minute speech, which acknowledged that the coronavirus scare is here to stay for long, was self reliance.
Assocham Secretary General Deepak Sood said, "The 5-pillars of building a self-reliant India would take us towards becoming a credible global force that reaches out to the world from a position of strength but with a sense of responsibility and humility."
Nisha Biswal, President, US-India Business Council, said, "At Rs 20 lakh crore, the overall response will go a long way toward stabilising the Indian economy and positioning it for post-pandemic recovery. It will also support industry's efforts to put tens of millions of Indians back to work safely and minimize the spread of the novel coronavirus."
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