String of economic reforms announced by Hon’ble Finance Minister will accelerate private sector investments : PHD Chamber

No.PR-83 May 17, 2020 New Delhi String of economic reforms announced by Hon’ble Finance Minister will accelerate private sector investments : PHD Chamber String of economic reforms announced in the fifth and last tranche of Rs 20 lakh crore support package announced by Hon’ble Finance Minister will accelerate private sector investments in the country and lead to a self-reliant India, said Dr D K Aggarwal, President, PHD Chamber of Commerce and Industry said in a press statement issued here today Opening up of all sectors to private sector is a major breakthrough which will significantly push industrial and socio-economic development in the country, said Dr. D K Aggarwal Reforms announced for improving ease of doing businesses, employment generation, ramping up health and digital educational infrastructure, reforms in insolvency and bankruptcy code will place India in a better position in the global economy and make it attractive destination for the foreign investors, he said. The decision to allocate an additional Rs 40,000 crore under MGNREGS will help in generating employment opportunities and boost rural economy through higher production, said Dr Aggarwal. The focus of the Government in increasing public expenditure on health and investment in grass root health institutions will ramp up health infrastructure in rural and urban areas, said Dr Aggarwal. Announcement on IBC reforms including raising minimum threshold to initiate insolvency proceeding to Rs 1 crore from Rs 1 lakh, suspension of fresh initiation of insolvency proceedings upto to one year and excluding COVID-19 related debt from the definition of default will lead to enhancement of ease of doing business in the coming times, said Dr Aggarwal. Reform of decriminalisation of Companies Act violation including technical and procedural defaults will de-clog the criminal courts and NCLT and provide much needed relief to the industry stakeholders, said Dr Aggarwal. Announcement for corporates including direct listing of securities by Indian public companies in permissible foreign jurisdictions, lower penalties for all defaults of small companies, one person companies, producer companies and start-ups, among others will significantly improve our ease of doing business rankings, said Dr Aggarwal. The significant reform of introducing new Public Sector Enterprise Policy will provide an excellent platform for private sector to leverage the opportunities in all sectors of economy including strategic sectors too, said Dr Aggarwal. Launching of PM eVIDYA programme for multi-mode access to digital/online education will contribute significantly to technology driven education system in the coming times, said Dr Aggarwal. Reforms announced for supporting State Governments including borrowing limits of States being raised from 3% to 5% for 2020-21 only and to promote state level reforms part of the borrowing will be linked to specific reforms like increasing job creation through investment and promoting urban development, health and sanitation will go a long way in percolating the benefits at grass roots level, said Dr Aggarwal. Ends. Media Division PHD Chamber of Commerce and Industry