The government stimulus package and appropriate reform measures were the need of the hour to maintain economic recovery and offset the economic impact of the second wave of COVID-19, Sanjay Aggarwal, head of the PHD Chamber of Commerce and Industry, said in a statement.
Mr Aggarwal noted that the impact of the second wave was greater than the first and industries were liable for greater support from the government this time around. He congratulated the Center for 'swift action' taken last year to support people, trade and industry.
"GDP growth rate at 0.4% for Q3 FY 2020-21 has been very much in line with our projections in the PHDCCI Economic and Business Momentum (EBM) Index released on February 22, 2021, in which we had estimated that the GDP growth will be at around 0.1% to 1% in Q3 FY 2020-21," the report mentions as quoted by NDTV.
The PHDCCI predicted that to maintain projected fourth-quarter growth for 2020-21 (1%) more calibrated measures would be needed to reach the projected GDP growth rate of 11% in the financial year of 2021-22. These include support demand creation and have a multiplier effect on enhanced production possibilities, expansion of employment in factories, expansion of capital investments and the overall virtuous circle of growth and development of the Indian economy said Mr Aggarwal as quoted by NDTV.
The PHDCCI has also requested Finance Minister Nirmala Sitharaman for an extension of various timelines for compliances including tax and GST returns as well as an extension of the Emergency Credit Line Guarantee Scheme (ECLGS) for MSMEs till March 30 2022.