Experts and intelligentsia of the city have praised the stimulus package announced by the Center amid Covid-19 outbreak. During interaction with Free Press, they shared their views on the same.
The Quarantine of Economy
“The choice of ‘Life over Livelihood’ has costed Indian economy dearly. Now we move into the lockdown 4.0 with changed norms of Life and Livelihood and the accompanying stimulus package. But the need of the hour is to give a big push to the economy through direct governmental spending on infrastructure projects and employment for migrant labourers under MGNREGA. Social security for the unorganized sector is the foremost priority of humanomics which should also cover the hawkers, vendors, small shopkeepers and if we have decided to adopt a protectionist mode for the infant industries, then monitoring of loan, and quality control among others have to be executed strictly or else the package will be another NPA booster and a drain on the honest taxpayer. Moreover, it can be hoped that the package aircraft has a real fiscal fuel and lands on the ground.”
- PROF N TAPAN CHOUREY, PROFESSOR OF ECONOMICS, GGPGC
Several indirect benefits in offing
“The first announcement made on May 13 was mainly meant for MSME sector. The package had only one direct benefit of EPF contribution by government but many indirect benefits were provided like: additional credit facilities, increase in liquidity among others. These steps will ensure continuity of jobs and continuity of ancillary business. Disallowance of foreign participation in tenders worth 200 crore will help local brands. Liquidity support to NBFC at this crucial time will have cascading effect on real estate business which is among major contributor of jobs and supports nearly 50 + businesses. The latest stimulus has come at a time when we need positivity at large and it will work I believe.”
— NITIN VASANT GARUD, CA
O?+5Ls = ModiPendonoeconomics
“Measures announced by our Prime Minister and elaborated by FM of the country may be summed up as Oxygen pumping formula with care for 5Ls-Land, Labour, Liquidity, Laws and Locals that too amid pandemic outbreak. Achieving a Self-Reliance Economy is possible through direct/indirect taxes as our growth rate needs to move beyond 6%. Let’s hope that $ 200 Billion package actually ends up in the hands of needy. This huge package should not get lost in the accompanying riders. But Real concern is that, very soon PSU Indian Banks will also start demanding Rs 50,000 crores for infusion to meet out recapitalisation and liquidity demands.”
—DR DHARMENDRA MEHTA, FACULTY, FMS-HOD-SSIC VU
What’s in it for me?
Everybody is excited about Rs 20 Lakh Crore package! But as a professional trainer, is there anything in it for me? The provision of collateral free loan to MSME is a great opportunity. Many professional teachers and coaching classes are suffering from investment limitations can now have a formal set-up. FM has extended a lot of deadlines to provide relief. But what would I love to see in future? It will be great if informal training sector gets formal recognition. Right from Google and many global universities to local internet service providers can come up with solutions to enable this sector take off quickly in post Covid19 situation.”
—VARUN GUPTA, EDUCATIONIST
Kick-start the MSME
“India has begun unveiling, $266 billion stimulus package to help its coronavirus-hit economy get back on its feet. A Rs 3 lakh crore credit line has been opened up for micro, small and medium enterprises (MSMEs) to meet their operational expenses. MSMEs under financial stress can avail fresh funds. The investment limit and maximum turnover to be considered as MSMEs have been revised upwards. E-market linkage will be provided, as a replacement for trade fairs and exhibitions. All receivables from the central government and state entities will be cleared in 45 days. The ministry of housing and urban affairs will advise states, union territories and their real estate regulatory authorities to treat Covid-19 as an event of “force majeure.”
—YASH JAIN, RESEARCHER
Ujjain’s connect with PDS Portability announced by FM
The first suggestion of this term, #PDS_Portability, announced on Thursday by Finance Minister was given by Gaurav Dhakad (Twitter @GAURAVDSW) to the Prime Minister, Finance Minister on March 25. He also retweeted it to Rural Development Minister NS Tomar, Food and Civil Supplies Minister Ramvilas Paswan, MoS Raosahab Danve Patil and MP CM Shivraj Singh Chouhan as well. The main aim of the tweet was to benefit migrating labourers. The tweet search also confirmed the fact that the word #PDS_Portability was first coined by Gaurav, who hails from Ujjain and is a research scholar having his PG from DU and TISS.
