MVIRDC WTC Mumbai calls for fiscal and monetary relief measures to industry

MVIRDC World Trade Center Mumbai welcomes the Rs. 1.70 lakh crore worth relief measures to the vulnerable sections of the population to cope up with the challenges of the nation-wide lockdown amidst the outbreak of COVID-19.

Sharing her perspectives on the relief measures, Ms. Rupa Naik, Senior Director, MVIRDC World Trade Center Mumbai said, “The central and state governments should tie-up with distributors of FMCG companies, grassroot organizations, including NGOs, to ensure last mile delivery of these relief schemes to all, including the tribal population and the families of migrant workers, who are unable to return to their homes.”

Ms. Naik further remarked, “It is understandable that the government has provided additional foodgrains and cylinders, instead of resorting to direct cash transfers, considering its budget constraints; however, in this exceptionally difficult times, government should set aside all its fiscal concerns and express commitment to take any measure to assist the economically disadvantaged people.”

Ms. Naik further suggested that the government and Reserve Bank of India should soon come out with a relief measure for retail and wholesale traders, aviation and hospitality industry, real estate companies and MSMEs in other sectors to overcome losses in their business.

Specifically, the government and RBI should freeze all statutory dues, relax norms governing non performing assets, reduce interest rates for MSMEs, introduce additional credit lines for traders and other enterprises.

The government should assure to provide relief measures worth 4-5% of GDP to alleviate the cash flow constraints of more than 6 crore MSMEs in the country. WTC Mumbai strongly feels, “we cannot afford to let any enterprise become insolvent, as it will further aggravate the bad loan problem in the financial sector and vitiate investor confidence.”