GS PAPER III: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment.

Context: Industry body CII said the government has room to provide a ₹3-lakh crore stimulus and advocated a reduction in fuel taxes and enhancement in cash transfers to households to revive demand.

• Confederation of Indian Industry (CII) called for employment generation to be the central focus of policy measures and an expansion of the central bank’s balance sheet to accommodate a fiscal push of 1.3% of GDP.
• The ongoing second wave had a significant impact on economic activity in this quarter and a large part of the labour force faced health issues, either themselves or in their families.
• CII said the cumulative impact of two waves on incomes, livelihoods and consumer sentiment, coupled with increase in household medical expenses, are likely to impact consumer demand for some time.
• It called for a reduction in excise duties on fuel, some temporary GST rate cuts and inclusion of Aviation Turbine Fuel (ATF) under the GST regime.
• CII recommend that the Centre takes a balanced view on the need to manage inflation and push growth, and the way they deal with oil prices is one part of the puzzle that needs to be fixed.
• CII estimated that India needed to vaccinate a minimum of 71.2 lakh people daily, to cover the entire population by December as committed to by the government.
• CII also urged the government to urgently notify the rates under the Remission of Taxes and Duties on Export Products scheme, as it would encourage investments focused on exports, especially under the new production-linked incentive schemes for several sectors.

https://www.thehindu.com/business/cii-urges-3-lakh-crore-stimulus/article34844037.ece#:~:text=Mooting%20'urgent'%20fiscal%20support%20to,to%20households%20to%20revive%20demand.

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