Federation of Indian Chambers of Commerce and Industry (FICCI) has said that India’s economy may need a stimulus of as much as Rs 9-10 lakh crore in a bid to face the challenges posed by the COVID-19 crisis.
Amid the halted economic activities due to a nationwide lockdown, several key sectors of the Indian economy namely travel, tourism, entertainment, manufacturing, transport infrastructure, financial services, among others are facing major distress.
As quoted by FICCI’s Business Continuity Plan report by, there is an immediate requirement for a significant stimulus of Rs 9-10 lakh crores, this constitutes around 4-5 percent of the current GDP.
The report talks about utilisation of funds for the rehabilitation of informal workers, MSMEs, and large corporates.
In a bid to ease the lack of liquidity faced by the borrowers amid the nationwide lockdown, the Reserve Bank of India on March 27 permitted the banks and financial institutions to offer a three-month moratorium on term loans and credit card bills.
The FICCI report recommends extending a similar moratorium for loans taken from mutual funds and insurance companies.