BusinessIndia

CAIT seeks monetary stimulus from Centre as corona hits markets

New Delhi, Mar 14 (GCBusiness) Confederation of All India Traders (CAIT) has voiced concern over Indian MSMEs’ dependence on imports from China in the aftermath of pandemic novel coronavirus outbreak and urged Central government to facilitate the small businesses with additional benefits to face the looming crisis and accelerate domestic production.
‘While MSMEs (Micro, Small and Medium Enterprises) has been badly hit by the epidemic, we cannot rule out the opportunity that it has provided to the country. The government should intervene to prepare domestic market as an alternative to that of China’s,’ CAIT president Pradeep Khandelwal told the media during a conference here on Friday.
Alongside, Mr Khandelwal requested the central government to back the small traders via providing easy loans with extended EMI and other additional benefits.
‘Reserve Bank of India (RBI) should provide a monetary stimulus and recapitalisation of banks through strengthening non-banking finance companies and microfinance institutions,’ he said.
‘All statutory due dates for payment and filing of returns be postponed till June 30 and bank EMIs should be also postponed to June 30,’ he added.
CAIT – a forum that handles problems faced by traders and seeks to address them further urged RBI and government to issue an underwritten advisory to banks to provide ‘Corona Cash Loans’ of up to 7 per cent of the sanctioned limit with one per cent reduction of cash limit each month.
‘MSMEs makes up for 80 per cent of the jobs in the country and despite it being one of the very first industries to be affected by slightest of the problems, it is hardly paid any attention to,’ a CAIT member said.
India is heavily dependent on China for the import of finished goods, raw materials for production and spare part for assembling finished goods.
The effect of COVID-19 at the trade market was seen earlier this morning when the market halted for 45 minutes as Nifty hit 10 per cent lower circuit while Sensex fell by over 3,000 points and Indian Rupees hit a record low of 74.50 against the US Dollar

Source
Via UNI-India

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