No.PR-89 May 20, 2020 New Delhi MSME needs strong intervention with the NBFC along with banks for coming back as a power sector for the economy that creates jobs and opportunities for growth of the country: Dr. Junaid Kamal Ahmad, Country Director, World Bank, New Delhi, 20th May 2020: India moving around a substantial growth rate, needs to work harder to sustain itself. Every country needs to have a social intervention so that they move from slowdown to the revival of the economy. The scheme provided by Hon’ble Prime Minister Shri Narendra Modi Ji of Pradhan Mantri Garib Kalyan Yojana is a fundament intervention to support the economy during these times of crisis, said Dr. Junaid Kamal Ahmad, Country Director, World Bank, in an interactive session by PHD Chamber of Commerce and Industry on “Impact of COVID 19 to the Indian Economy as well as World Economy” Dr. Junaid Kamal Ahmad, while deliberating about the topic gave an insight into the nature of stock witnessed by India and World due to this pandemic COVID-19 by giving a flashback of the 2008 Financial Crisis. He said that what distinguishes the 2008 financial crisis with the current times, is the focus on supply and health care systems and faculties. Every country has adopted a practice of social distancing which has resulted in a way of locking down the economy. The health system around the world couldn’t deal with a spike that was emerging due to massive spread. The countries had to slow down the process of infection and lockdown was adopted. Due to lockdown, it was a time for the healthcare sector to search for a solution which can be a vaccination or other. This lockdown led to a slowing down of the economy which has resulted in the slowdown, said Dr. Junaid Kamal Ahmad. He also emphasized that it is important to protect the economic base of the country which will help to stabilize the economy. Every country has adopted a sequence that will help the economy to bounce back which through the art of engaging in a slowdown, protecting the people and assets, and then starting the economy. There is no way this pandemic can be dealt with/ without the state intervention. We need to strengthen the federal system of the state and unite them all together to fight against the crisis. It is also important to look after the urban system of the country, said Dr. Junaid Kamal Ahmad. Dr. Junaid Kamal Ahmad mentioned that we need to open the lockdown in a slow manner and in such a way so that the economy grows and the spread of the COVID-19 pandemic doesn’t happen. Taking the MSME sector which is one of the backbone sectors of the country, Dr. Junaid Kamal Ahmad said that the government has created some liquidity in the market for the MSMEs. But the challenge is how to use the liquidity? MSME needs strong intervention with the Non-Bank Financial Institution (NBFC) along with banks for coming back as a power sector for the economy that creates jobs and opportunities for growth of the Country. Mr. Peter Rimillle, Representative of Konrad-Adenauer-Stiftung in India gave a brief insight into the measures and reforms taken by Germany to combat the impact of COVID-19. He also gave a global perspective about the financial packages announced by different countries of the world. Dr. D K Aggarwal, President, PHD Chamber of Commerce and Industry in his Presidential Address mentioned that financial assistance provided by the government and world bank has helped every sector of the society and every Indian industry to bounce back in the world economy. He also gave a brief outlook about the measures and reliefs undertaken by the Government of India to mitigate the impact of COVID-19 and how India is witnessing an opportunity to grow itself in the economy of trade, factory, and business. The Session was in association with Konrad-Adenauer-Stiftung and was moderated by Mr. Saurabh Sanyal, Secretary-General, PHD Chamber. The session witnessed participation of all senior members of the PHD Chamber all over the country including industry stalwarts all over the country. Ends. Media Division PHD Chamber of Commerce and Industry
PHD Chamber of Commerce and Industry, established in 1905, is a proactive National Apex Chamber working at the grass-root level and with strong national and international linkages.