Taking cognizance of the need to support the economy which has been adversely affected by the second wave of the pandemic, CII President said that “We are heartened by the targeted interventions announced by the government, with a special focus on health and tourism. The liquidity boosting measures to keep the enterprises afloat in the aftermath of COVID 2.0 in the form of extending loan guarantees to the healthcare, tourism sectors & small borrowers, in addition to increasing the scope of ECLGS by Rs 1.5 lakh crore are very welcome steps ”. Mr TV Narendran, President CII further added that the ECLGS Scheme has been a very successful intervention with the sanctioned amount standing at Rs 2.69 lakh crores so far. The extension of its scope and coverage are expected to provide significant support to the cash flow of the stressed sectors.
“Tourism sector has been one of the most impacted sectors, with the second wave having exacerbated its duress. With a significant contribution to both GDP and employment, the economic relief package announced for the tourism sector will usher in the much-needed liquidity and help revive this employment intensive sector”, said Mr Narendran. The financial support in the form of working capital loans with 100% guarantee to more than 11,000 registered tourist guides and travel and tourism stakeholders will help save livelihoods, revive the sector and mitigate further closures and also create new job opportunities. Free Visas for the first 5 lakh tourists will provide the necessary welcome relief to foreign tourists coming into India and would help in promoting tourism after a massive disruption faced by this sector.
The extension of Aatmanirbhar Bharat Rozgar Yojana till March 2022 is heartening too, as it is expected to incentivize employers for creation of new employment and help in restoration of loss of employment during the second wave of the pandemic. Apart from providing liquidity support, the measures which spanned other critical areas such as boosting exports, public health infrastructure, Digital India, extension of tenure of PLI scheme for large scale electronic manufacturing and reforms-based power sector are all significant announcements.
The pandemic has amply demonstrated that a robust healthcare sector is of utmost importance for the country. In this context, the focus of the announcements on the healthcare sector is welcome. “The announcements by the Finance Minister by way of allocating an additional Rs 50,000 crore to the healthcare sector towards scaling up medical infrastructure especially for children, as well as Rs 23, 220 crore for Public Health will help in strengthening health delivery to the last mile especially during times of such duress”, added Mr Narendran.
28 June 2021