CII urges ₹3-lakh crore stimulus

Industry group pushes for cash transfers, fuel tax cut to help revive demand

Mooting ‘urgent’ fiscal support to shore up the economy, industry body CII on Thursday said the government has room to provide a ₹3-lakh crore stimulus and advocated a reduction in fuel taxes and enhancement in cash transfers to households to revive demand. Stressing that livelihoods had taken a severe hit due to the COVID-19 pandemic, Confederation of Indian Industry (CII) president T.V. Narendran called for employment generation to be the central focus of policy measures and an expansion of the central bank’s balance sheet to accommodate a fiscal push of 1.3% of GDP. “The ongoing second wave has had a significant impact on economic activity in this quarter and a large part of the labour force faced health issues, either themselves or in their families,” Mr. Narendran said, stressing that health exigencies and job losses had squeezed spending ability.