FICCI statement on Q1 GDP numbers

Aug 31, 2020

Urgent need to take immediate measures to bolster demand in the economy- President FICCI

 

NEW DELHI, 31 August 2020: Commenting on the GDP numbers announced today, Dr Sangita Reddy, President, FICCI said, "The sharp plunge in quarter-1 GDP growth numbers was anticipated. However, the magnitude of the contraction has indeed come as a surprise. This only highlights the urgent need to take immediate measures to bolster demand in the economy and we hope government and RBI will plan for the next set of fiscal and monetary measures and make these announcements soon."

The Government through Atmanirbhar package has given significant impetus. There is a need to have enhanced focus on execution. In addition to this, the Government may consider further measures like putting more money in hands of the vulnerable and weaker sections of the society. Government could also consider a temporary reduction in GST rates especially in consumer durables segment. In fact, the festive season has already begun and some positive signaling by government might give a push to consumption activity. Specific announcements for hospitality, tourism, retail, and healthcare sector are eagerly awaited as well. Greater impetus to housing, infrastructure and auto sectors and support to state governments for purchase of buses for city transportation must also be considered.

"The Indian market is intrinsically strong and the option to raise money through international markets must be explored," added Dr Reddy.

"Private sector of course stands with the Government in building self-reliant India through continuous innovation, better management and greater resilience," she said.