After the Prime Minister of India announced an INR 20 Lakh Crore package to revive the economy, India’s Finance Minister spelt details about how the amount will be used across sectors. In his address to the nation, the Prime Minister also asked the citizens to be vocal about local in a world where globalisation will now take a back seat.
For the aforementioned to happen though, the PM stressed how it is now more important than ever for Indian companies to step up and offer world-class products which can compete anywhere in the world when it comes to quality. Industry leaders have voiced their opinions about the measures and TVS Motor Company’s Chairman, Mr Venu Srinivasan has come out in strong support of the announcement made by the Finance Minister.
In a statement, he said, “We welcome the comprehensive and highly progressive measures announced by the Finance Minister today, injecting much-needed liquidity for non-banking finance companies (NBFCs) and MSMEs (micro, small and medium enterprises). The announcement of Rs 3 lakh Crore collateral-free automatic loan is an exemplary move to boost the industry sentiment. This will augment liquidity and help MSMEs revive the business during these challenging times. The large credit guarantee will be a great step to restore the supply chain which was heavily impacted by the shutdown. The massive fiscal stimulus will help improve the impacted financial system and the positive business perception will stimulate demand. These measures will kick-start financial activity and help rebuild the economy during the pandemic.”
A day before the Finance Minister’s press conference, the Prime Minister addressed the nation, and Mr Srinivasan has applauded his leadership through another statement, where he said, “The Hon’ble Prime Minister has showcased outstanding leadership in battling the COVID-19 crisis. We appreciate the Government’s initiative to roll out a visionary economic stimulus package of INR 20 Lakh Crore. This will bring much-needed relief to several stressed sectors and industries. First, the Government must prioritise helping the small, medium and micro-industry employees and facilitate a direct benefit transfer to employees in unorganised and small scale sectors. Second, they must ensure credit backstop for micro, medium and small industries so that they do not go into a cash crunch and finally, I am hopeful that there is a stimulus created to propel demand. Demand is key to drive the market and it is essential to inject confidence in the economy for people to come out and buy. The Indian auto industry is a strong pillar of the Indian economy with huge contributions to GDP and employment. We are confident that this focused package will infuse positive sentiment in the industry in the long-run.”