- Said- decrease in interest rates will benefit, but it is not enough to improve the economy
- The government announced a package of 1.70 lakh crore for the poor, farmers and laborers last week.
Industry body Assocham has demanded a package of $ 100-120 billion (Rs 7.50 lakh crore-Rs 9 lakh crore) for recovery of all sectors from the damage caused by coronavirus. Assocham Secretary General Deepak Sood has said that reducing the interest rate on behalf of the Reserve Bank can be a short-term measure, but the government will need to do a lot more.
3.75 lakh crores will benefit the country due to cheaper crude oil: Assocham
Sood says that there is no danger of rising inflation at this time, the government should take advantage of it. The country will also benefit by $ 50 billion (Rs 3.75 lakh crore) due to the fall in crude oil prices. Sood said the RBI’s move will be beneficial for the economy, but it is not enough to bring the economy back on track.
Government has already announced a package of 1.70 lakh crores
The government announced a package of Rs 1.70 lakh crore on 26 March to provide relief to the poor, laborers and farmers. In this, it was announced to give 5 kg of extra grains and one kg of pulses free for three months. It was also announced to give 500 rupees every month for the next three months to women Mahila Jan Dhan account holders. Also, the PF contribution of employees of small companies will be filled by the government for three months. Apart from these too many announcements were made.
RBI made loans cheaper, also gave three months relief in EMI
On the very next day of the government’s package i.e. March 27, RBI announced a 0.75% reduction in the repo rate. This has made loans cheaper. Along with this, three months relief has also been given to repay the loan installment. However, the loan time will be increased by three months. RBI has also given three months relief in interest on working capital loans of companies.