EEPC Welcomes ECGC, Equity Boost of Rs. 1.1 lakh crore in New Package

The Rs 6.28 lakh crore stimulus package announced by the government is very well-timed and will boost overall confidence in the economy. The second wave of pandemic badly hit many sectors and the fresh tranche of support would help them come on their feet, said EEPC India Chairman Mr Mahesh Desai.

Appreciating the relief measures, he said that the additional Rs 1.5 lakh crore under Emergency Credit Line Guarantee Scheme (ECLGS) would help trade and businesses especially in the MSME sector to tide over the liquidity crunch.

"The terms of availing the loan under ECLGS should, however, be relaxed to widen its coverage," said Mr Desai.

In a major boost to merchandise exports, the government has proposed to infuse equity in Export Credit Guarantee Corporation (ECGC) over 5 years to boost export insurance cover by Rs 88,000 crore. Further, a Rs 33,000 crore boost for project exports through the National Export Insurance Account has also been proposed.

"This will promote the export sector which has been the key engine of growth in recent months and is expected to remain positive. Extension of the PLI scheme for large electronic manufacturing by one year is another key announcement that will propel domestic manufacturing and hence create jobs," the EEPC India Chairman said.

Finance Minister Smt Nirmala Sitharaman announced Rs 1.1 lakh crore loan guarantee scheme for Covid-affected sectors. Health sector being the priority sector in the wake of pandemic, more medical infrastructure is proposed to be created.

Mr Desai said that increased spending on health infrastructure would give a fillip to the medical device sector which has emerged as a sunrise sector and has potential to become a leading exporter globally.