PM Modi-led meet discusses growth measures

The meeting, attended by Minister of Finance and Corporate Affairs Nirmala Sitharaman and Minister of Home Affairs Amit Shah, discussed measures to support MSMEs and farmers, enhance liquidity and strengthen credit flows, among other issues

May 2, 2020

PM Modi pointed out the need to generate gainful employment opportunities by helping businesses overcome difficulties caused by the pandemic

The Prime Minister discussed the need to commence work on new infrastructure projects and speed up activity in the infrastructure sector

The PM discussed ways to ensure financial stability in the wake of COVID-19 and steps to enable businesses to recover quickly from the challenges

The pandemic, which has claimed 240,000 lives worldwide, is now expected to cost the global economy as much as US$2 trillion in 2020

Prime Minister Shri Narendra Modi on May 2 held a meeting to discuss strategies for interventions in the economy as well as measures to spur growth and welfare amid the Coronavirus (COVID-19) pandemic. The meeting, attended by Minister of Finance and Corporate Affairs Nirmala Sitharaman and Minister of Home Affairs Amit Shah, discussed measures to support MSMEs and farmers, enhance liquidity and strengthen credit flows, among other issues. The PM also discussed ways and means to ensure financial stability in the wake of COVID-19 and steps to enable businesses to recover quickly from the challenges. The COVID-19 disease has claimed more than 240,000 lives between December 2019 and April 2020 while nearly 3.5 million people have contracted the disease in over 180 countries. 

India has reported around 42,500 Coronavirus cases and 1,300 deaths. The pandemic is now expected to cost the global economy as much as US$2 trillion in 2020. The Government of India has implemented a nationwide lockdown to contain the spread of the disease, a necessary move that will have an unavoidable impact on the economy. However, while the world slips into an economic recession due to the pandemic, India is expected to come out as an exception, as per the UNCTAD. Another report, by the UNESCAP, has pegged India’s growth at 4.8 per cent in 2020. Meanwhile, the World Bank expects India to grow by up to 2.8 per cent, and the IMF has projected India’s growth to be 1.9 per cent in 2020. The Government has been consulting all stakeholders to strengthen the economy.

In the meeting, among other issues, PM Modi pointed out the need to generate gainful employment opportunities by helping businesses overcome difficulties caused by the pandemic. He stressed on the need to strengthen major structural reforms undertaken in the past. New structural reforms in the areas of corporate governance, credit markets, and infrastructure sectors were also discussed. The Prime Minister discussed the need to commence work on new infrastructure projects and speed up activity in the infrastructure sector. He wanted the projects taken up under the National Infrastructure Pipeline to be reviewed at the highest level to avoid time delays and enable the creation of jobs. The meeting resolved to take action to remove any obstacles to investment flows and capital formation.