Nirmala Sitharaman's economic stimulus package does not have something for everyone; need to address concerns of startups, retail

'For every section of our society there is something in the AatmaNirbharBharat,' said Finance Minister Nirmala Sitharaman, while making announcements of the Rs 20 lakh crore package on Wednesday.

FP Staff May 14, 2020 15:05:28 IST
Nirmala Sitharaman's economic stimulus package does not have something for everyone; need to address concerns of startups, retail

'For every section of our society there is something in the AatmaNirbharBharat,' said Finance Minister Nirmala Sitharaman, while making announcements of the Rs 20 lakh crore package on Wednesday.

A few sectors do not believe there was something for every section. Some sectors have expressed their unhappiness with what they feel could be done for them.

Retail sector not covered under MSME

Retailers said measures such as a reduction in TDS rates for payments announced by Finance Minister Nirmala Sitharaman will bring back liquidity with businesses and provide a boost to the economy. But they said as retail is not covered under MSME, the sector will not benefit from the several measures announced to help such units.
Kumar Rajagopalan, CEO, Retailers Assocation of India (RAI) said: The retail industry is waiting for more reforms from the government over the next few days "so that retailers in India have some working capital in their hands and they are able to retain employment".

Nirmala Sitharamans economic stimulus package does not have something for everyone need to address concerns of startups retail

File image of finance minister Nirmala Sitharaman. PTI

Traders body, CAIT said retail trade is expecting a similar package as that announced yesterday so as to deal with possible financial crunch post-COVID-19. The traders across country are much under financial distress and if the government does not handhold the trading community, about 20 perceent small business will be forced to die a natural death, it said.

Startup sector

The government's booster measures for MSMEs drew a mixed response from the startup community with many believing the package will benefit startups, even as others disagreed. Raman Roy, co-founder of Indian Angel Network and founder of Quattro, said: "The startup category was not covered".

"We hope that the government will take note soon and announce the necessary steps aimed at enabling startups to survive and continue operating in these challenge times," he said adding that the startup ecosystem comprises the key to unlocking the PM''s vision of a self-reliant India. Bhavin Turakhia, CEO and co-Founder of Zeta, echoed similar views. "Startups will have an important role to play in this difficult journey and we are hopeful that the announcements that will follow over the next few days will address this constituent with the same generosity," he said.

GST compensation

As GST (goods and service tax) compensation, the states have to be given at least Rs 75,000 crore. "Nothing has been said about this in the package, the Kerala Finance Minister Thomas Isaac said.

In a tweet, Isaac said "If the first day''s package of Union FM is a fair samplem the Rs 20 lakh cr stimulus is going to be deeply disappointing. The actual outflow resources directly from the budget is only around Rs 30,000 crore. At least the interest payment of MSME sector during the moratorium could be waived."

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