“The Government has imparted a huge boost to bank recapitalization with a proposed amount of Rs 2.11 lakh crore which is likely to kickstart the credit cycle and facilitate private investments. The Cabinet decision to address a  vital issue is very timely and welcome. We are especially pleased with the announcement of recapitalization bonds, which CII had recommended strongly, among other measures”.

“A three-pronged strategy to encourage investments is evident in the announcement of expanding public expenditure on infrastructure, boosting private investments and addressing delayed payments to the MSME sector. The Government’s decision to enhance spending on roads and highways in a strategic manner including port connectivity and border and cross-border roads will have a big multiplier impact on economic growth”.

“We also appreciate the Government’s decision to encourage registration of MSME in 50 clusters and promote registration of PSEs under TReDS (Trade Receivables Discounting System). This would aid formalization of the economy as also alleviate the issue of delayed payments. CII hopes that the current requirement for MSMEs to register under GST in all states to participate in e-commerce will be addressed”.

New Delhi

24 October 2017