Hon'ble FM's announcements | May 13

The stimulus measures announced by the Hon’ble Finance Minister yesterday will provide an impetus to the MSME sector, which is the second largest employer in India and is now expected to utilize the security cover of additional loans to resume business activity while redeploying labour. The focus is now on our banking & NBFC sector (which have specific credit guarantee measures) to play an effective and efficient role in implementation. The reduction of TDS by 2.5% along with expeditious processing of income tax refunds will provide measured relief in terms of enhanced short-term liquidity to non-salary and specified recipients.

The term ‘force-majeure’ has never been as relevant as it is today and the clarity provided by the Hon’ble Finance Minister in this context will minimise litigation.

Corporate India will need to reduce its debt in the medium to long term by deploying technology & innovation to re-engineer their business models in order to generate and cater to the changed and evolving consumer sentiment, while working cohesively with their vendors to ensure the sustainability of their back-end supply chain.

We look forward to progressive announcements in the context of the INR 20 lakh crore package, with the hope that these will continue to be balanced and reform-oriented.