CII pitches for `3 lakh crore fiscal stimulus to push economic growth

New Delhi: The Indian economy requires a Rs 3 lakh crore fiscal stimulus, including cash transfer to households through Jan Dhan accounts to spur economic growth amid the pandemic, industry chamber CII said on Thursday and pitched for appointment of a 'Vaccine Czar' for speedy vaccination coverage.

CII President T V Narendran also said the chamber expects GDP to grow at 9.5 per cent in 2021-22 as the strong growth in the second half of the fiscal year will be supported by robust external demand and large-scale coverage of vaccination, allowing resumption of economic activity. He also advocated for appointment of a "Vaccine Czar" for speedy vaccination coverage. The new president said suitable fiscal measures to alleviate the stress of people impacted by the second wave of COVID-19 are the need of the hour.

The Indian economy is a consumption-led economy and athe pandemic has impacted the consumer demand and due to this, the chamber has called for measures such as cash transfer as a number of actions are needed to deal with this demand shock, he told reporters. "Fiscal stimulus of Rs 3 lakh crore is required...There is room for administering additional fiscal stimulus of up to Rs 3 lakh crore," he said adding the Reserve Bank should expand its balance sheet in order to accommodate the increased stimulus so that lending costs remain contained.

Measures suggested by it include enhanced MNREGA allocations; short-term and focused GST cuts to boost demand; time bound tax relief/interest subvention/stamp duty concession for home buyers; LTC cash voucher scheme like last year; and extension of the Aatmanirbhar Bharat Rozgar Yojana till March 31, 2022.