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PHD Chamber suggests 7-pronged strategy to mitigate coronavirus impact on industry

PTI   

PHD Chamber suggests 7-pronged strategy to mitigate coronavirus impact on industry
Business1 min read
New Delhi, Mar 17 () To tide over the impact of coronavirus, industry body PHD Chamber on Tuesday suggested a seven-pronged strategy, including reducing repo rate to enhance liquidity in the market and increasing working capital limits of business enterprises by 25 per cent.

"Reduced cost of capital will enhance the competitiveness of exporters in the international market and help exporters to grab the opportunity of slowing China's global exports with increased markets share of India," PHD Chamber President D K Aggarwal said.

He also sought reduction in excise duties and VAT on petroleum, diesel and allied products by at least 25 per cent, to bring down the prices of petrol and diesel by Rs 9-10 per litre.

Such a move would be a big relief to the industry and kick start growth while reviving the spirit in the economy, he added.

According to him, the government needs to enhance consumption expenditure in the economy as increased domestic demand would help the manufacturing sector to grow and maintain the capacity utilisation.

He stressed that the allocation of Rs 102 lakh crore made for the National Infrastructure Pipeline for the next five years needs to be implemented for the coming financial year, as increased spending in infrastructure would give a multiplier effect and rejuvenate the aggregate demand in the economy. This would mitigate the impact of coronavirus on the country's growth trajectory, he added.

"To benefit from China's decreased manufacturing production due to coronavirus outbreak, the government needs to build up a well integrated and competitive supply chain logistics...," Aggarwal said. RSN RAM

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