CII calls for continued support to small businesses amidst Omicron spread

Amidst the rapid spread of the Omicron variant of COVID-19, India’s leading industry body has called on the government to continue support for small businesses as well as high contact sectors like fitness, hotels, tourism and aviation among others.

 

Confederation of Indian Industry (CII) President TV Narendran said the industry body has made out a case for the government to support some of these sectors as part of its recommendations to the Finance Ministry for Budget 2022-23.

 

Speaking with Business Today TV managing editor Siddharth Zarabi, the CII head said that many sectors of the economy have recovered well post the earlier COVID waves, but some have struggled. 

“If you look at the recovery post COVID, many sectors have done well. And, many sectors have struggled because they have been most impacted by earlier waves, and now by wave three. So, our submission to the government is that micro, small and medium sized businesses need to get continued support”, he said.

Narendran, who is the managing director and chief executive officer of Tata Steel, added that some budgetary support can be directed towards those sectors that have an urgent need.

 

Pointing out that a lot of livelihoods have been impacted due to earlier waves of COVID, Narendran said this has reflected in the fragility of consumption. “It is not surprising that people don’t want lockdowns. Industry is prepared to deal it with today. The government is more experienced both at the central and state level”, he said.

 

In response to a question on the need for direct income support for the most vulnerable, Narendran said CII has suggested to the centre that it continue support with the rural employment guarantee scheme as much as required to make sure the recovery is complete, particularly in the rural sector.

“The second part is spending more on creating health infrastructure. If you really look at the households' incomes, middle class, lower-middle-class, the poorer people, you know they have been hit by the fact that their health expenditure has been far more than their budget”, Narendran said.

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