On a day global rating agency Fitch lowered India’s economic growth forecast for current fiscal year 2020-21 to 0.8 per cent from 1.8 per cent, the Government stepped up efforts to deal with the gloom-and-doom scenario caused by Covid-19 outbreak.
While India’s growth forecast, Fitch cited fall in consumer spending and fixed investment due to extension of coronavirus lockdown and disruption in economic activities.
The Ministry of Home Affairs (MHA), Department for Promotion of Industry and Internal Trade (DPIIT) and representatives of industry associations on Thursday discussed ways to boost the economic and industrial activities during lockdown period. The representatives of Industry Associations urged the MHA to allow more industries to operate with reasonable safeguards.
Sources said the Government has been considering providing relaxation to some more industries to restart economic activities. State Governments are working to operationalise industrial units in non-hotspot zones as the Central Government has given permission for exempting many essential services post April 20.
Certain quarters of the industry and exporters have raised concerns over the revised guidelines issued by the MHA on April 15, stating that it is difficult for them to implement those for partial resumption of their factory operations.
MHA’s Joint Secretary Punya Salila Srivastava said Home Secretary Ajay Bhalla and Department of Promotion Industry and Internal Trade (DPIIT) Secretary Guruprasad Mohapatra discussed with the industry associations ways to facilitate industrial and economic activities across the country amid the lockdown.
“Feedback is being taken from industrial units and their problems are being addressed, she said during a daily Press briefing on measures related to the lockdown clamped in the country to prevent the spread of the novel coronavirus.
Srivastava said progress in economic activities, especially in rural areas, is being witnessed, and added that road construction, brick kilns and cement manufacturing related works have also started. Till April 22, more than 1.5 crore work days have been achieved under the MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) scheme, she said.
The DPIIT, which is a department under the Commerce Ministry, in a tweet said the conference with industry associations was “to facilitate permits for industrial activities in order to boost economic activities.”
The DPIIT is holding consultations with State Governments to discuss the extent to which retail trade and manufacturing can be eased further in the extended lockdown period. In March, industry bodies had sent a list of essential items to the Ministry of Consumer Affairs which recommended that work from home enablers such as mobile phones, laptops, power banks, cable, mouse and repair services, infant products, small kitchen appliances, essential lighting items, innerwear, etc, be included in the list.
Meanwhile, the durable industry also believes that besides fans, air conditioning products should be allowed to be sold.