'1991 Moment': Anand Mahindra, India Inc cheer Modi's ₹20 tn economic package4 min read . Updated: 13 May 2020, 12:56 AM IST
- Mahindra said he can't wait to hear the contours of the package slated to be announced by FM Nirmala Sitharaman on Wednesday
- Indian industry bodies, CII, FICCI, CAIT, said the package will go a long way in making India a self-reliant nation
Prime Minister Narendra Modi's ₹20 lakh crore special economic package to make India self-reliant and bring the economy back on the track in view of coronavirus-induced lockdown has been hailed by India Inc as transformational and unprecedented.
Anand Mahindra, Mahindra Group chairman, said Modi's Tuesday speech was "an opportunity to change the narrative from ‘Survival’ to ‘Strength’". He said he can't wait to hear the contours of the package that are slated to be announced by Finance Minister Nirmala Sitharaman on Wednesday.
The package is equal to about 10 per cent of the GDP of the country, having a special focus on MSME sector of the country. Seven crore traders are now anxiously awaiting the detailed announcement to be made by Finance Minister Nirmala Sitharaman, according to the Confederation of All India Traders (CAIT).
"Strengthening of supply chain with upgraded technology will be the silver line of the economic package. His emphasis on ' local' clearly indicates the priority of the government to push domestic products. We expect a major shift change in future policies of the government which will definitely boost the production and consumption of Indian goods," said Praveen Khandelwal, CAIT Secretary-General.
Meanwhile, C Banerjee, DG, Confederation of Indian Industry (CII), said, "The Prime Minister made an unprecedented announcement of the economic package to deal with the extraordinary situation we are in today. The economic package of ₹20 lakh crore really promises to place India back into the path of economic recovery."
Dilip Chenoy, Secretary-General, FICCI, said that the Prime Minister's announcement of the economic package was very significant.
"The Prime Minister's announcement of the package -- ₹20 lakh crore, in his address to the nation was very significant. What he said about it covering all sections of society, all sectors of industry and really looking for a self-reliant India was a very positive message," Chenoy said.
"We all need to collaborate and work together to make that happen and make Indian economy revive again," he added.
Ficci President Sangita Reddy said the strengthening of the five pillars — economy, infrastructure, system, demography and demand will pave the way for India returning to a higher sustained growth path again.
"We expect that the contours of the package to be announced by Finance Minister Nirmala Sitharaman will address the needs of the poor and needy, MSMEs and also the industry and common man on the whole. The stress on land, labour and liquidity is what is required to make India self-reliant," she added.
The main focus of the Prime Minister's 33-minute speech, which acknowledged that the coronavirus scare is here to stay for long, was self reliance.
Assocham Secretary General Deepak Sood said, "The 5-pillars of building a self-reliant India would take us towards becoming a credible global force that reaches out to the world from a position of strength but with a sense of responsibility and humility."
The Society of Indian Automobile Manufacturers (SIAM) also hoped that a focused package to support the Indian Automotive Industry would be announced by the Finance Minister, when she announces the details of the package.
Nisha Biswal, President, US-India Business Council, said, "At ₹20 lakh crore, the overall response will go a long way toward stabilising the Indian economy and positioning it for post-pandemic recovery. It will also support industry's efforts to put tens of millions of Indians back to work safely and minimize the spread of the novel coronavirus."
PHD Chamber of Commerce and Industry President D K Aggarwal said the stimulus package, at this juncture, is need of the hour to refuel economic fundamentals of the economy and resume the economic activity.
Auto major Mahindra and Mahindra's managing director Pawan Goenka said Modi has caught the attention with the ₹20 lakh crore number.
"We cannot be hostage to the virus and need to get on with our lives. We have to start buying local and be vocal about it," Goenka, a part of the conglomerate with a global footprint, said in a tweet.
Harsh Goenka of RPG Enterprises called it a powerful booster to the economy and a timely lifeline which will benefit all sections of the people and lift a lot of struggling sections out of trouble.
Adar Poonawala, who leads Serum Institute of India, world's largest vaccine maker, said USD 200 billion stimulus is the right commitment and hoped for proper utilisation of the money to help the needy.
"I hope this money actually ends up in the hands of the people who need it the most, and does not get lost in complicated schemes," he tweeted.
Gautam Singhania of textiles and garment maker Raymond said the country is "migrating from merely battling a pandemic to bringing a paradigm shift in the economic affairs" to become self-reliant and welcomed the vision outlined to make local products global.
Japanese electronics major Panasonic's head for the country, Manish Sharma, said it is a "fairly large package" and appreciated the intent to expand domestic manufacturing and becoming a part of the global supplu chains "considering the geopolitical environment".
Greaves Cotton's Nagesh Basavanhalli said the quantum of the package was a surprise and hoped that it will help the manufacturing sector. "The industry is now looking forward to the finer details of this enormous package," he said.