India Inc seeks stimulus package after lockdown extension

New Delhi: India Inc on Tuesday said the nationwide lockdown extension was necessary to avert a humanitarian crisis, but insisted on the need for a stimulus package to rebuild the economy hit hard by the Covid-19 pandemic.

Earlier in the day, Prime Minister Narendra Modi announced that the current lockdown will be extended till May 3, saying it is necessary to contain the spread of the novel coronavirus in the country.

He said detailed guidelines on implementation of the new lockdown will be announced on Wednesday, and some relaxations may be allowed after April 20 in places where there are no hotspots.

The catastrophic effect of the lockdown on the overall economy and livelihoods of lakhs of migrant workers triggered severe concerns following which a number of state chief ministers in their video conference with Modi on Saturday sought some sort of relaxation for a number of sectors.

Late last month, the government announced a Rs 1.7 lakh crore package aimed at providing relief to those hit hard by the lockdown as well as an insurance cover for healthcare professionals handling virus infected people.

Estimates show that India may be losing close to Rs 40,000 crore daily due to the national lockdown with an estimated loss amounting to Rs 7-8 lakh crore during the past 21 days," said Ficci President Sangita Reddy.

Further, it is also expected that close to 40 million jobs are at risk during the period April-Sept 2020. Hence, an urgent relief package is also critical, she said. 

CII Director General Chandrajit Banerjee said the Covid-19 curve trajectory as of now required a fitting containment response and Prime Minister's decision for continuation of the lockdown is necessary to avert a larger humanitarian crisis.

"Prime Minister has also provided a guidance on exit from the lockdown after 20 April which helps industry plan better.

"The extension gives the government adequate preparation time to organise an orderly and safe restart of the economy as and when health conditions permit. Industry too can devise its strategies for commencing operations accordingly duringthis extension period," Banerjee said.

IT industry body Nasscom said the extension announcement by the government will help India to build on the containment strategy of the last three weeks and strengthen our readiness to support the post lockdown phase.

The lockdown that came into effect on March 25 was to expire on midnight of April 14.