Taking cognizance of the need to support the economy, which has been adversely affected by the second wave of the pandemic, the chieftains of India Inc lauded Finance Minister Nirmala Sitharaman’s shot at boosting the economy.
“We are pleased with the targeted interventions announced by the government with a special focus on health and tourism. Liquidity enhancement measures to keep enterprises afloat after COVID 2.0 in the form of credit guarantees to healthcare, tourism sectors and small borrowers, Apart from increasing the scope of ECLGS to Rs 1.5 lakh crore, it is a very welcome step,” said Mr. TV Narendran, Global CEO and Managing Director Tata Steel.
Industry body Confederation of Indian Industry (CII) President Shri Narendran further said that the ECLGS scheme has been a very successful intervention, with the sanctioned amount of Rs 2.69 lakh crore so far. The expansion of its scope and coverage is expected to provide significant support to the cash flow of stressed sectors.
Shri Jyoti Prakash Gadiya, Managing Director, Resurgent India believes that the new economic relief measures announced today indicate that the Finance Minister continues to rely on the credit lead growth of the economy with the extension of the Guarantee Scheme. “Recognizing the realities related to inadequacies in health infra and other worst-affected sectors, especially in the non-prosperous non-metro areas, is a welcome step to create essential facilities,” Mr Gadia said.
Lalit Kumar, Partner, J Sagar Associates said, “Government’s support to commercial banks by guaranteeing lending to NBFC-MFIs to small borrowers will provide financial assistance to such small borrowers and also enhance the lending capacity of NBFCs.”
Ms Madhavi Arora, Principal Economist, Emkay Global Financial Services, while welcoming the measures said that most of the financial support is still down the line and is in the form of loan guarantees and not direct incentives.
However, Vikash Khandelwal, CEO, Ikaro Guaranty believes that guarantees are an efficient way for businesses to facilitate funding. This improves lender’s confidence and supports more accessible access to loans without locking in collateral.
According to Mr Shachindra Nath, Executive Chairman and Managing Director, U Grow Capital, considering the fact that nearly 90% of the ECLGS outlay was effectively utilized to support the affected MSME sector, an additional Rs 1.5 lakh crore for revival will significantly stimulate As well as the development processes of MSMEs.
“This announcement came at a crucial moment, as World MSME Day was celebrated a day earlier. Also, the credit guarantee scheme for 25 lakh individuals through micro-finance institutions and the financial measures announced for the tourism sector are highly appreciated. goes,” said Mr. God.
Chandrajit Banerjee, Director General, CII, said, “Providing liquidity support to the stressed sectors arising out of the pandemic, announcement of measures like healthcare, tourism sectors and credit guarantees for small borrowers, besides increasing the scope of ECLGS to Rs 1.5 lakh crore. is commendable. These measures are expected to address the severe cash flow crunch arising out of business disruptions caused by the lockdown in the wake of the second wave of the pandemic. “
“The additional tranche of economic revival measures with an outlay of Rs 6.29 lakh crore will provide a significant impetus to growth this year,” Mr Banerjee said.
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