COVID: Industry waits for economic package

Tribune News Service

New Delhi, April 21

The Covid-19 pandemic has had a deep impact on the Indian industry and there is tremendous uncertainty the future unless the government announces a substantial economic package according to a survey by FICCI along with a survey firm Dhruva Advisors.

Almost 72 per cent of the respondents said Covid has had a ‘high to very high’ level of impact on their business. They also do not foresee a positive demand outlook for their business in this fiscal.

Yet the industry is confident of bouncing back provided there is assistance from the Government and the banks by one-time restructuring of all advances and loans. Besides, the Government can give a sovereign guarantee to banks for 40 per cent of new loans and advances up to 20 per cent of their existing limits.

The survey claimed that unless a substantive economic package is announced by the government immediately, there could be permanent impairment of a large section of industry. Jobs are also at risk over the coming months as nearly three fourths of the surveyed firms said that they may look at some reduction in manpower in their respective companies.

“We are hopeful that the government will introduce a series of measures in quick succession to support demand ensure business continuity. This would be a confidence booster and we hope sentiment will improve following the economic package,” said FICCI President Sangita Reddy.

The survey saw participation from almost 380 companies from across sectors.