Reduce taxes, give incentives to trade and industry, suggests AIAI’s President

The President of All India Association Of Industries & Vice Chairman of World Trade Centre Mumbai Vijay Kalantri has discussed the impact of coronavirus on trade and industry suggesting what the government should do to help the sectors.

There has been a great impact of coronavirus on trade and industry, especially in manufacturing and MSME sectors.

Kalantri suggested that there is a need for the government to immediately come out with a package to see that proper incentives are given to the industry and trade to combat coronavirus’s impact on the industries and also to see that they are able to survive.

Earlier, the estimated loss was 20,000 crore, but Kalantri said he feels that by March 31, the estimated loss to the industry and trade could be over 2,00,000 crore, which is a very huge figure and will have a great impact on all the sectors of the industries across India, and including the daily wagers, automobiles, etc..

In order to prevent this loss, there is need for the government to reduce taxes and come out with a package. He suggested not only central but the state governments should also see that in what ways they can reduce taxes and give incentives to the industry to survive.

The government should also consider paying 50% of the wages for the month of March as this month was totally impacted due to the virus, said Kalantri, adding that the industry and trade cannot survive such heavy losses.

“We feel that this should be seen on priority rather than the government still thinking of coming out with a financial package. This should be done on a fast-track base and the government should discuss it with all the stakeholders across India,” Kalantri said.

Further Kalantri warned that the government should see over its impact as it’s not gonna be a temporary impact but a prolonged one.

“After the impact of coronavirus, we also have to see how we are able to support the industry and trade by compensating them or providing incentives to survive.

Further, we also appeal that the stock market should be closed for a week like a lockdown have been imposed everywhere, except for the essential industries,” urged Kalantri.

Further, he suggested that it is a good opportunity for the government as this crisis could be converted into an opportunity by thinking or having a think tank on how we are able to develop our industry and trade in a better way for times to come.

Kalantri said that he hopes the state and central government will look into the grievances of trade industry and manufacturing and infrastructure and come out with a package soon. He also suggested that the Reserve Bank of India needs to relax the guidelines, norms so that industries could breathe and survive.