Comapnies can give lay-off if nothing works.”Covid-19 and the lockdown could cause permanent damage to businesses and can force many private firms to lay off staff unless the government announces a stimulus package immediately”, these were words of respondents to a business impact survey conducted (Ficci) and consultancy firm Dhruva Advisors.
What the survey says
69% of respondents expect the government to announce a package, with tax relief, fiscal incentives, and efforts to ease compliance and create demand.Niti Aayog, the government’s think-tank has said that a package amounting to 5% of GDP is in order, which comes at around ₹9.5 lakh crore could be disbursed.
The government has thus far neither announced a package, nor indicated when it will do so.
“Jobs are at risk over the months as nearly three-fourths of the surveyed firms said that they may look at some reduction in manpower in their respective companies,” the industry body said, citing a survey of 380 companies across industries. Ficci has been demanding a stimulus package of ₹9-10 lakh crore to bring the economy back on track, while some industry associations have demanded a ₹16 lakh crore industry revival package.
Measures by Govt.
Officials in the finance ministry said on condition of anonymity that various options have been ready with the government and it will come up with right stimulus package in an appropriate time.
International Monetary Fund (IMF) expects India to grow by 1.9% in 2020, . The Reserve Bank of India (RBI) has so far announced two sets of measures, reducing the policy rate to 4.4%, pushing banks to lend more, providing ₹4.74 lakh crore of liquidity, and easing bad loan norms to ensure the books of banks aren’t awash in red.