Lok Sabha Question No. 589 (UNSTARRED), answered on 2020-09-16
Subject: Impact of Coronavirus
Ministry: COMMERCE AND INDUSTRY
Asked by: V. Kalanidhi

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

## UNSTARRED QUESTION NO. 589. TO BE ANSWERED ON WEDNESDAY, THE 16 TH  SEPTEMBER, 2020.

## IMPACT OF CORONAVIRUS

## 589.   DR. KALANIDHI VEERASWAMY:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

वाणिज्य एवं उद्योग मंत्री

- (a) the impact of Corona virus on Indian Industry, Sector-wise;
- (b) whether most of the industries within the country especially in Tamil Nadu have reached on the verge of closure due to COVID-19;
- (c) if so, the details thereof;
- (d) whether the Government has made any plan for the revival of industries; and
- (e) if so, the details thereof and if not, the reasons therefore?

## ANSWER वाणिज्य  एवं उद्योग मंत्री (श्री पीयूष गोयल) THE MINISTER OF COMMERCE & INDUSTRY (SHRI  PIYUSH GOYAL)

- (a) to (c): The sudden outbreak of COVID-19 has severely impacted some of the major economies of the world. It has affected countries across the globe including some of the major players like USA, European Union, UK, and India. Both World Bank and IMF estimate contraction in global GDP for FY 2020-21 due to  the  spillover  effects  of  the  lockdown  to  curb  the  spread  of  COVID-19 pandemic. Various sectors were affected due to the nation-wide lockdown. However, after the lockdown was relaxed, we see significant improvement in several sectors of the economy.
- (d) & (e): Government has implemented several measures for the revival of industries which, inter-alia, include:
- (i) Relief  measures  for  MSMEs  such  as  collateral-free  lending  program with  100  percent  credit  guarantee,  subordinate  debt  for  stressed MSMEs  with  partial  guarantee,  partial  credit  guarantee  scheme  for public  sector  banks  on  borrowings  of  non-bank  financial  companies, housing finance companies (HFCs), and micro finance institutions, Fund of Funds for equity infusion in MSMEs, additional support to farmers via

concessional credit, as  well  as  a  credit  facility  for  street  vendors  (PM SVANidhi), amongst others.

- (ii)   Regulatory  and  compliance  measures:  postponing  tax-filing  and  other compliance  deadlines,  reduction  in  penalty  interest  rate  for  overdue GST filings, change in government procurement rules, faster clearing of MSME dues, IBC related relaxations for MSMEs, amongst others.
- (iii) Structural  reforms  announced  as  part  of  the  Atmanirbhar  Package which, inter alia, include deregulation of the agricultural sector, change in  definition  of  MSMEs,  new  PSU  policy,  commercialization  of  coal mining, higher FDI limits in defence and space sector, development of Industrial Land/ Land Bank and Industrial Information System, revamp of  Viability  Gap  Funding  scheme  for  social  infrastructure,  new  power tariff policy and incentivizing States to undertake sector reforms.
- (iv)   Reduction  in  EPF  contributions,  employment  provision  for  migrant workers; insurance coverage for workers in the healthcare sector; and wage  increase  for  MGNREGA  workers  and  support  for  building  and construction  workers,  collateral  free  loans  to  self-help  groups.  Also, Government  has  launched  National  Infrastructure  Pipeline,  expanded Phase Manufacturing Programme, Production Linked Incentive Schemes and created Centralised Investment Clearance Cell for end to end support for investment.

India has responded positively to the Covid-19 challenge.  Indian manufacturers have  enhanced  production  of  PPE,  N-95/N-99  masks,  HCQ  medicine  and oxygen  cylinders  to  meet  the  domestic/external  requirements.    The  Indian economy is known for its resilience and is expected to gradually return to its high growth performance in the coming months.

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