PHD CHAMBER BULLETIN Vol. XLIII No. 6 June - 2021 ` 25 PHD Chamber Bulletin | June 2021 1 2 PHD Chamber Bulletin | June 2021 PHD Chamber Bulletin | June 2021 3 4 PHD Chamber Bulletin | June 2021 Interactive session with Mr. Sidharth Nath Singh, Cabinet Minister, Micro, Small and Medium Enterprises, Investment & Export, NRI, Sericulture, Textile & Handloom, Khadi & Gramodyog, Government of Uttar Pradesh MONTHLY NEWS BULLETIN OF PHD CHAMBER President Mr. Sanjay Aggarwal CONTENTS Senior Vice President Mr. Pradeep Multani PRESIDENT’S MESSAGE 6 Vice President Mr. Saket Dalmia CHAMBER AT WORK 10 Editor: FOCUS STATES 37 Mr. Saurabh Sanyal Secretary General INTERFACE 61 HEADWAY Production Editor: Towards Inclusive Growth 63 Ms. Neelu Kapoor Economist & Bulletin Head COMMUNIQUE India Inc. is the official publication of PHD Chamber of Expressions 76 Commerce and Industry and any part of the publication may not be reproduced or transmitted in any other form in whole or in part without the written permission of the publishers. The MoUs 77 opinions and views expressed within this publication are not necessarily those of the publishers. The publishers regret that they cannot accept liability for errors or omissions in this issue. Media Buzz 80 For further information and feedback, please contact: PHD CHAMBER OF COMMERCE AND INDUSTRY PHD House, 4/2 Siri Institutional Area August Kranti Marg, New Delhi-110016 Phone : 91-11-26863801-04 Fax : 91-11-26855450 Email : [email protected] Website : www.phdcci.in PHD Chamber Bulletin | June 2021 5 MESSAGE President’s MESSAGE Friends, “The secret of change is to focus all of your energy, not on fighting the old, but on building the new.” This statement of Socrates from almost 1000 years ago seems most relevant today. The past year and half has shown us that an honest will to work unitedly, swiftly and thoughtfully can achieve incredible feats for greater good. While the second wave of the COVID-19 infection proved to be an onslaught that caused much loss and destruction, with a gentle and cautious sense of relief, this aggressive spat of the Coronavirus infection seems now to be receding, across the country. We must appreciate the fight the collective put up, including the relentless efforts of our healthcare workers, the allied forces of sanitation, law & order, logistics and the MSME sectors, also the citizens of the country who held back their daily lives and stayed at home to reduce the virulent spread of the virus and needless to say, the administrative acumen the government displayed in navigating this unforeseen apocalypse. The loss of lives notwithstanding, the response of the people, the nation and the government has been courageous and exemplary. The need of the hour is full preparedness at the systemic level, to ensure avoidance and repeat of a calamity of this kind and magnitude. Having said this, the partial/complete lockdowns in many States and restrictions in various regions across the country did seem to create an uncertain economic environment, bringing unavoidable signs of slowdown. The second wave of COVID-19 pandemic in April and May 2021, much more severe than the first wave of 2020, drastically impeded the economic recovery process. The PHDCCI’s Economy GPS Index saw a drastic fall to a nine months low at 93.3 for May 2021 from 124.3 recorded for April 2021. On the basis of recent movement of PHDCCI’s Economic and Business Momentum (EBM) Index, the Chamber projects overall GDP growth for FY 2020-21 at minus 7.9%. Analysts also lowered the GDP growth forecast for India to a humble 9.5% for the current fiscal, compared with the 11% expected earlier, as the two engines of growth – private consumption and investment – both were considerably affected by the second wave. However, we expect a strong rebound in economic recovery as restrictions get eased in the weeks ahead. We must mention here that there is a silver lining amidst this economic gloom. India still remains an attractive destination for long-term global investors with FDI being Mr. Sanjay Aggarwal the highest ever at US$ 81.72 billion in FY 2020-21, 10% more 6 PHD Chamber Bulletin | June 2021 PRESIDEnt’S MESSAGE than FY 2019-20. Further, India’s foreign homes across India. The Chamber, Ms. Nirmala Sitharaman recently asked exchange reserves crossed US$ 600 the BSE and the financial fraternity various Ministries to spend more than billion for the first time as on June 4, have also come forward to generate their capital expenditure targets as well 2021 covering a little less than 15 months and amplify resources for setting as explore public private-partnerships of imports. Indicators such as power up of an oxygen plant, which will be for viable projects. consumption, E-way bills and foreign placed at New-Delhi-based Tirath Ram The Chamber has sent portfolio investment witnessed a slight Shah Charitable Hospital, ensuring recommendations to the government increase in the second half of May continuous free supply of oxygen in the to issue special COVID bonds for raising 2021. Further, I am glad to say that the hospital. funds to provide stimulus support to second COVID-19 wave did not impact The PHDFWF has also very push economic growth. This would Indian agriculture sector production in graciously distributed food items and help mobilize fiscal resources and any significant way. Agriculture exports masks to needy families, abandoned become an appropriate substitute to grew by 43 % in the first two months children and migrants during the second the market, by the government. Such of FY 2021-22, despite the pandemic, wave of COVID in various parts of Delhi. special bonds involve relatively less driven by policy level interventions, as PHDFWF is supporting 36 families who inflation risk, limit the crowding-out of well as the expansion of products into have lost their only bread earners due private investments from other sectors new markets. to COVID or otherwise. The Chamber is of the economy and form a source of The lockdown induced restrictions also supporting the vaccination drive tax-free income for bondholders. in the economy did create a difficult for its Members and the Secretariat The government should definitely time for the Indian industry, with the and their families. The Chamber has consider coming out with mega health closure of business establishments. also started a COVID helpline to help parks or special pandemic zones (SPZs) The MSME sector has been badly hurt the members and the Secretariat. spread across key locations in India akin with a total decline in their earnings. Despite being the largest vaccine to SEZs that can cater to the wellbeing According to a survey conducted by the manufacturer in the world, India of all citizens in case another such PHD Chamber on assessing the impact has a massive challenge- vaccinating pandemic wave hits our country. We of coronavirus 2.0 on economy and 1.4 billion people in a democratic have an opportunity to learn from this businesses, the top challenges clearly environment. I urge the government to pandemic and take measures that will emerged as increased cost of raw speed up the vaccination process. This help us develop mainstream global materials, availability of working capital, needs to be done on a war footing over health security schemes, up-scale weakening consumption & demand, the next few months to cover at least health spending, health infrastructure high price-cost margins/profitability, 75% of the population of the country to and investment in R&D. upkeep of deployed workforce and enable quick and seamless transition The pandemic has shown the making sure salaries are paid to on-roll towards normalcy. Vaccines production immense power of benevolence and workers, repayment of loans and cost capabilities need to be enhanced, while kindheartedness. In the words of the of compliances. also increasing imports from other great Nobel Laureate, Mari Curie, Nonetheless, I must point out that countries. I suggest that temporary ““Nothing in life is to be feared, it is the Rs. 3 lakh crores Emergency Credit patent waiver in the World Trade only to be understood. Now is the time Line mandated for providing collateral Organization for the COVID-19 vaccine to understand more, so that we may free loans to MSMEs has been an and other related products will enhance fear less.” I beseech the government effective financial measure to restore the transfer of knowledge and know- and the masses to recognize that the liquidity and financial fitness and has how for scaling up vaccine production pandemic is far from over. I request all somewhat helped MSMEs to restart worldwide. citizens to follow the COVID appropriate operations by giving them additional Stronger stimulus and support by behaviour in line with the government’s working capital. We suggest the the Government, more than even last advisory, “Stop the Transmission, government increase the size of the year, is a clarion call, as can be evidently Crush the Pandemic - Masks, distance, Emergency Credit Line from Rs. 3 lakh seen by the mammoth scale of lost sanitization and ventilation to prevent crores to Rs. 6 lakh crores and extend lives of several bread earners and the the spread of SARS-CoV-2 virus.” I the period of availability to March 31, general lowering of morale of the strongly believe that we have the right 2022. populace. Given the loss to business building blocks to rebuild a stronger, Scarcity of medical oxygen cylinders and industry, we suggest lower interest better and a booming India because of at hospitals and healthcare facilities rates for consumers and businesses, our robust inbuilt demand consumption across India during the second wave lesser compliances for MSMEs vis-à-vis characteristics.