The Associated Chambers of Commerce & Industry of India (ASSOCHAM) said that the steps announced by Prime Minister Narendra Modi in his address to the nation on New Year’s Eve are extremely positive for the Indian economy. The apex industry body also said that the focus should now be on effective implementation of these schemes to drive economic growth.

“The credit guarantee for SME and MSME has been increased to Rs 2 crore. This will provide support to these sectors. The focus should now be on effective implementation of the credit insurance programme so that banks and non-banking financial companies (NBFCs) get their money in case of defaults faster than what has happened in the past,” said Sunil Kanoria, President, ASSOCHAM.

“The initiatives like 60-day interest waiver for farmers who have taken loans from district co-operative banks and primary societies together with additional fund of Rs 20,000 crore given to National Bank for Agriculture and Rural Development (NABARD) to give loans to farmers would help in alleviating pains of farmers and rural class,” he added.

Kanoria also said that the government should complement these actions with substantial reduction in both individual and corporate tax rates, more so as private sector investments are yet to kick-start and lower tax rates will certainly push private investments and drive economic growth.

“Considering that post-demonetisation there has been a substantial surge in deposits, resultantly banks have started reducing interest rates and further rate cuts will only revive consumption demand and reinvigorate the investment cycle,” noted Kanoria.

Source: Fibre2fashion