KOLKATA: Confederation of Indian Industry (CII) has come up with new estimates for the gross domestic product (GDP) growth, India can expect for the fiscal year of 2020-21. They forecasted the best-case GDP growth of 1.5% alongside the worst-case at a -0.9%. Additionally, they suggested several measures that the government should take to address the economic crisis that India is going through because of Coronavirus pandemic. These measures include the urgent implementation of stimulus packages, credit protection schemes for small, micro and medium enterprises (MSMEs) and creating a fund that’s going to used to buy corporate bonds.
Chandrajit Banerjee, the director of CII stated, “Given the extent of the damage to the economy from the disruption to business, the GDP growth in FY21 will likely be the lowest in many decades… government intervention becomes critical not only to sustain the economy but also to prevent any humanitarian crisis.”
The CII outlined a comprehensive economic recovery plan, in the report. It included short-term stimulus measures along with medium-term structural reforms. Direct benefit transfers to Jan Dhan Accounts and additional working capital limits for enterprises were some of the actions that the CII urged Indian Government to take, to provide adequate relief to all economic sectors.