Stimulus package will bring in much needed relief to stressed sectors: Venu Srinivasan

Prime Minister Narendra Modi, in a televised address to the nation on Tuesday announced Rs 20 lakh crore stimulus package to revive the economy, which combined the government's recent announcements on supporting key sectors as also measures rolled out by the Reserve Bank of India.

In a statement on Wednesday, Srinivasan said the government must prioritise in aiding the small, medium and micro industry employees and facilitate a direct benefit transfer to employees in unorganized and small scale sectors.

He said the Government must also ensure 'credit backstop' for micro, medium and small industries so that they do not go into cash crunch.

"Demand is the key to drive the market and it is essential to inject confidence in the economy for people to come out and buy", he said.

Srinivasan noted that the auto-industry is a strong pillar of the economy with huge contributions to GDP and employment and expressed confidence that the stimulus package would infuse positive sentiment in the industry in the long run.