PHD Chamber lauds the Demand Boosting & Job Creating Economic Reforms announced under AatmaNirbhar Bharat Abhiyaan 3.0

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While appreciating the bold economic reforms announced by the Finance Minister, Nirmala Sitharaman under AatmaNirbhar Bharat Abhiyaan 3.0, Sanjay Aggarwal, President, PHD Chamber of Commerce and Industry said in a press statement issued here today that the reforms will have a multiplier effect on the economic growth trajectory through enhanced demand, job creation, increased private investments, escalated exports and growth of sectors that have strong backward and forward linkages.

The recovery in the key economic and business indicators on the back of series of stimulus announcements by the Government in last 7-8 months, totalling to around Rs 29.9 lakh crore, will go a long way in our fight against the pandemic impact of COVID-19 on trade, industry and economy, said Sanjay Aggarwal.

The economic reforms undertaken by the government have instilled the expectations of a strong, sustainable and even positive growth in Q3 FY2021 with robust resumption of the lost economic activity, said Sanjay Aggarwal.

The launch of Aatmanirbhar Bharat Rozgar Yojana, under which the Central Government will contribute 24% of EPF wages (12%+12%) for establishments having upto 1000 employees and 12% (employee part) of EPF for establishments having more than 1000 employees, for 2 years, is highly appreciable, said Sanjay Aggarwal.

The scheme will incentivise creation of new employment opportunities as it will cover only those EPFO registered establishments who takes in new eligible employees, said Sanjay Aggarwal.

The extension of Emergency Credit line Guarantee scheme (ECLGS) till 31st March 2021 and launch of Credit Guarantee support for 26 stressed sectors and health sector, will provide extended opportunity to the stressed borrowers to avail credit and clear their outstanding, said Sanjay Aggarwal.

Provision of Rs 1.46 lakh crore under Production Linked Incentive Scheme for 10 champion sectors will help link India to global value chains, encourage exports, give companies a competitive edge in global market and make India a global manufacturing hub in the coming times, said Shri Sanjay Aggarwal.

To help 12 lakh houses grounded and 18 lakh houses completed, the Government has provided Rs 18,000 crore under PM Awaas Yojana-Urban. The decision will boost housing and real estate sector, along with providing a fillip to the core sectors such as steel, cement, among others, said Sanjay Aggarwal.

The move to reduce the Performance Security on contracts to 3% form existing 5-10% for all ongoing contracts (without disputes) upto 31st December 2021 is highly appreciable, said Sanjay Aggarwal.

The non-requirement of Earnest Money Deposit (EMD) for tenders will reduce the burden on contractors, increase working capital in their hands and enhance the ease of doing business in infrastructure and construction sector, said Sanjay Aggarwal.

In a move to provide income tax relief to developers and home buyers as well as incentivize middle class buying houses, the Government has increased the differential between circle rate and agreement rate from 10% to 20% for first-time buyers, developers, on houses up to Rs 2 crore till June 30, 2021, said Sanjay Aggarwal.

The announcements such as equity infusion of Rs 6000 core for debt platform of National Infrastructure Investment Fund (NIIF) and Rs 10,200 crore additional outlay for capital and industrial expenditure on defence equipment, industrial infrastructure and green energy will help boost infrastructural development in the country and create multiplier effects on the economic growth, said Sanjay Aggarwal.

The significant reforms including Rs 65,000 crore fertilizer subsidy for farmers to ensure adequate supply of fertilizers in light of favourable monsoon; additional outlay Rs 10,000 crore for PM Garib Kalyan Rozgar Yojana to accelerate rural sector and boost informal employment; Rs 3000 crore to EXIM bank to promote project exports through lines of credit (LoC); and Rs 900 core for the research and development of COVID vaccine, are highly appreciable and inspiring, said Sanjay Aggarwal.

While, the rapid implementation and progression of reforms announced by the Government under AatmaNirbhar Bharat Abhiyaan 1.0 and 2.0 are commendable, the continuous facilitation of industry and further effective implementation of reforms at the grassroot level with enhanced synchronization between Central and State Governments are still crucial for the fruitful outcomes, said Sanjay Aggarwal.

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