The recommendations are part of a report titled 'COVID-19: Challenges for the Indian Economy - Trade and Foreign Policy Effects'.
Certain sections of economists and academicians have suggested various measures such as an incentive package for exporters and relaxation to businesses for delayed GST payment, with a view to help the economy tide over the impact of the COVID-19 pandemic.
The recommendations are part of a report titled ‘COVID-19: Challenges for the Indian Economy – Trade and Foreign Policy Effects’.
The Engineering Export Promotion Council of India (EEPC India) in a statement said it is an initiative where 40 economists and academics of Indian and international institutions have written their assessment of the economic, social and political impact of COVID-19.
The Council said it would brainstorm various ideas and assessments.
Nitya Nanda, director of Council for Social Development, suggested that the government could allow delayed depositing of GST, “say, one more month to deposit GST dues without any penalty”.
Businesses may be allowed to deposit only a part of the GST dues and retain the balance that can be adjusted against the input credit, Nanda said.
Sanjib Pohit, professor, National Council of Applied Economic Research (NCAER), said that a cut in intermediate tax during this time would definitely help the economy.
It is essential that the Union government transfers the states’ share of GST amount due immediately, Pohit said adding that the Centre should be proactive in releasing the GST due amount of firms immediately.
Another academician has stated that the government should invest heavily on infrastructure like power, roads, ports, and water possibly in a public-private partnership (PPP) mode to motivate the private sector to have some ownership of the infrastructure for long-term sustainability.
Sacchidananda Mukherjee, associate professor, National Institute of Public Finance and Policy (NIPFP), has stated that on revenue mobilisation, the government may consider acceleration of disinvestment programmes, auction of licences of natural resources extraction and utilisation (such as 5G spectrum and coal blocks) and reduction of unproductive subsidies.
Another writer has recommended that the exporter community will need to be given “big incentives and stimulus” to overcome the challenges in tough times.
The ASEAN-India Centre (AIC) at Research and Information System for Developing Countries (RIS) in collaboration with the EEPC has produced this report.
It has also mentioned that views expressed by the authors in the report are their own and do not represent the views of the AIC, RIS or EEPC India.