As the country gradually comes out from the nationwide lockdown slowly easing, Prime Minister Narendra Modi has formulated a set of procedures to be immediately put into place by his cabinet ministers to compensate for the heavy economic loss of the country.
The prime concerns included in the strategy are fast recouping of businesses, clearing off the delayed investments, reorienting corporate governance and credit markets, affirming financial stability and liquidity, hastening infrastructure projects and remoulding agriculture.
Businesses have already declined amidst the coronavirus pandemic and are anticipating a stimulus package from the government in this crisis.
After having a discussion with finance minister Nirmala Sitharaman, Modi stated that the initiatives taken up should be pursued ceaselessly and actions should be taken from time to time to overcome any kind of hindrance to investment flows and capital formation.
The main agendas highlighted by Modi in this meeting are strategies to succour the micro, small and medium enterprises ( MSMEs) and farmers and also procedures to revitalize liquidity and credit flows.
“It is good to think strategically of the long term, more efficient and reformed economy to go back to. We should also be focusing on the short-term issues including credit flow to the industry. There are some ground-level issues to be handled as well. For instance, how are supply chains going to operate if there is any conflict with the containment strategy, which might affect productivity,” said Abheek Barua, chief economist at HDFC Bank.
The Central Government had proclaimed a ₹ 1.7 trillion package last month for the impoverished people and is currently trying to curb out measures to help the badly struck businesses including MSMEs.