Remove uncertainties on localised coronavirus lockdowns to support economic recovery: CII

Industry body Confederation of Indian Industry (CII) on Tuesday said that business disruptions due to localised lockdowns should be mitigated to sustain the signs of economic recovery in the country.  

Chandrajit Banerjee, Director General, CII, said "In order to nurture the nascent signs of recovery, it is important to mitigate the uncertainties that are currently prevailing regarding the restrictions. Corporates are unable to plan beyond a horizon of a few weeks, affecting all operations."

Banerjee said, "Although it is not possible to predict the course of the pandemic, a dashboard approach, triggering predictable responses based on the progression of infections, can reduce uncertainty and boost both consumer and industry confidence, which in turn will support demand and investment recovery."

As per Banerjee, governments should standardise their responses based on certain thresholds to boost investment.

He added that containment zones should be limited to micro areas to ensure seamless supply chains functionality across district boundaries and state.

While the early signs of resumption in economic activity since the unlock phase in June point to a V-shaped recovery, Banerjee suggested deploying all policy levers to sustain the improvements.

Banerjee while confirming that the agricultural sector in India has emerged as a 'beacon of hope' for the domestic economy, noted that considerable government support through the National Rural Employment Guarantee Act (NREGA) and Pradhan Mantri Garib Kalyan Rozgar Abhiyan (PMGKY) have also boosted hopes of rural sector rebooting the economy.

CII, in a statement, also highlighted that the hospital sector is likely to register flat growth in FY21.

Banerjee, while mentioning positive developments in other sectors, said,   consumer-facing industries, like FMCG, would see a 15-20% growth during this fiscal as demand for food, hygiene and sanitation products would increase.