NEW DELHI: Amidst concerns over economic slowdown and reports of job losses, industry leaders met Finance Minister Nirmala Sitharaman on Thursday, seeking a stimulus package of over Rs 1 lakh crore to kick-start investment cycle and revive growth.
The meeting which lasted for three hours was attended by representative of business chambers and leading businessmen including Uday Kotak, TV Narendran, Sandip Somani, BK Goenka, Sajan Jindal, Sunil Mathur, Anil Khaitan, Sanjiv Puri, Rishab Premji, Sangeeta Reddy, Dilip Sanghvi and Ajay Piramal among others. “The economy requires a critical intervention by introducing a stimulus package. We have suggested for a package of over Rs 1 lakh crore,” Assocham President BK Goenka said.
Apart from the demand for stimulus package, the industry raised several issues, including job losses, reluctance of banks to lend to the industry and strong penal action for not spending CSR. Business leaders also expressed satisfaction with the meeting and said the government has assured that it will initiate action on the concerns flagged by them.
“It was decided that the government is going to take action very soon to revive the industry and it is a matter of sentiments. We got positive feedback from the finance minister,” JSW Group Chairman Sajjan Jindal said.
No transmission of interest rate cut and its reluctance to lend to the industry was another major concern for the industry. “It is not that there was a lack of liquidity in the banks, but lending was not taking place. There is stress on the economy as far as NBFC sector was concerned,” Piramal Enterprises Chairman Ajay Piramal said told reporters after the meeting.
He added that the NBFC issue is impacting sectors like auto, home loan, and MSME. The government also was assured that punitive penal provisions concerning non-compliance with CSR spending norms under the Company law would not be pursued.
Earlier this week, the finance minister also met PSU bank heads. Meanwhile giving a relief to startups, the Central Board of Direct Taxes in a circular, said that no verification will be done by an assessing officer if a startup has been recognised by the Department for Promotion of Industry and Internal Trade and the case is selected under limited scrutiny.