Received a call from Mr @HardeepSPuri, Hon Min of State for Commerce and Industry, GOI today afternoon. Had a long discussion with him on the steps to Revive the Economy and submitted my inputs for his consideration. (1/n)
Following were my inputs:
1. All announcements made as part of #AtmaNirbharBharat Package were about liquidity infusion & making cash available through Financial Institutions. The focus on demand side is lacking. Govt has to put money in people's hands. (2/n)
1. All announcements made as part of #AtmaNirbharBharat Package were about liquidity infusion & making cash available through Financial Institutions. The focus on demand side is lacking. Govt has to put money in people's hands. (2/n)
2. Govt can categorize sectors into 'minor affected', 'medium affected' & 'severely affected'. Help can be extend to a particular sector either in the form of financial or taxation or others forms based on the category under which a sector falls. (3/n)
3. While #FRBM for states has been increased from 3 to 3.5% without any conditions. But to go from 3.5 to 5%, the conditions set by GOI like #privatization of #Discoms, ease of doing business norms at dist level etc., are not easy to implement and should be removed. (4/n)
4. It is responsibility of the GoI to take care of #migration of labour as per 7th schedule of the Constitution. Migrant labour which has gone home due to lockdown and wants to come back to work should be provided with a coupon which allows them to travel back free of cost. (5/n)
5. Suggested that a plan be drawn up to to take care of #migrantlabourers by providing them with a living wage and some social benefits as #mobile ration cards, housing benefits, health coverage, free transportation etc. (6/n)
6. To create more demand, money can be deposited in the accounts of poor SC/ST on the lines of PM-KISAN. In 2019, GoI allocated Rs 1.32 Lakh Crs for SC/ST, which can be used for this purpose. This will not only help the poor SC/STs but also stimulate demand. (7/n)
7. Keeping in view that #COVID19 crisis has had a much deeper impact in urban areas, urban employment scheme similar to NREGA focused at urban poor & migrant labour can be started. This can help to create the social infrastructure such as health, sanitation, waste Mgmt etc. (8/n)
8. Also suggested that the number of days under #NREGA be increased from existing 100 days to 150 days and that it should be dovetailed to #Agriculture. To protect our #foodsecurity and our farmers steps must be taken to avoid any disruptions in the Agri supply chain. (9/n)
9. GoI to help the sectors as #automobile, real estate etc., which have strong backward and forward linkages. The decision to move from BS-IV to BS-VI may be postponed by 2-3 years or be limited only to cities. Bringing down GST to 5% will push the sale of vehicles. (10/n)
11. More than 80% of the employment is generated by MSMEs. Many of them unable to pay salaries are reducing their workforce leading to an increase in unemployment. GoI by devising an #employment #wage support package for MSMEs can save jobs and increase economic activity.(12/n)
12. The advisory issued to all States to treat #COVID period as force majeure for six months, needs to be extended to one year. Reducing stamp duty registration charges etc., will push real estate sector and long pending projects can be taken over by NBCC to deliver them.(13/n)
13. Bringing down personal #incometax rates also will put cash in the hands of the middle class which they will spend in the market and thereby push demand. (14/n)
14. While public and private banks have been included in the #Credit Guarantee Scheme, co-operative banks have not been included. With almost 70% of the MSMEs having accounts in Cooperative banks, there is a need to bring them also under the Credit Guarantee Scheme. (15/n)
15. Over the past few months, we have seen an improvement in the environment around us, especially with the air quality getting better. In order to sustain these gains, some amount of #stimuluspackage should focus of promoting #renewableenergy, Energy efficiency and #EVs. (16/n)
16.Taking into account the recent conflict with China, and following our Hon PM's call for 'Vocal for Local' & self Reliance, this is the right time to identify the capabilities of Indian Industry, rectify deficiencies and build capacities to harness our full potential. (17/n)
This is only possible with the support of the Govt. A strategic reserve fund can be created to build self Reliance in advanced technologies that have long gestation period and low RoI to encourage industry to take calculated risks. (n/n)
