The COVID-19 pandemic has turned into a huge socio-economic crisis in a short span of time. Economists suggest India’s economy might have its first contraction in 40 years in the current fiscal.
Meanwhile, the Indian government is taking multiple steps to limit the spread of the crisis. To ensure that the industry’s voice is heard and timely actions are taken, Grant Thornton in India conducted a survey eliciting feedback from entrepreneurial and mid-market companies on key priorities that the government should look at to support the industries and ensure business momentum.
Incentives ranked as the No. 1 priority by businesses in the survey
- Short-term cash flow support to the businesses through business interruption loans up to 15% of facility without additional collateral.
- No coercive action by any government department on any pending litigation demand, action or recovery on account of unavoidable delay in filing of appeals, applications, letters, letters and undertakings.
- Government should endeavour to pay all pending refund application and incentives within 30 days.
- Government should declare the ongoing global pandemic a ‘force majeure’ for all commercial contracts, whether included or not.
- Consider extending financial reporting period for 2019-20 to 15 months ending 30 June 2020.