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E-Conclave: Govt to provide liquidity support in stimulus 2.0, says CEA Subramanian 

India’s Chief Economic Advisor (CEA) KV Subramanian said the government is all set to address supply-side issues in its second relief package, which will include liquidity support to help Micro, Small and Medium Enterprises (MSMEs) tide through the Covid-19 crisis. India’s Chief Economic Advisor (CEA) KV Subramanian.India’s Chief Economic Advisor (CEA) KV Subramanian said the…

India’s Chief Economic Advisor (CEA) KV Subramanian said the government is all set to address supply-side issues in its second relief package, which will include liquidity support to help Micro, Small and Medium Enterprises (MSMEs) tide through the Covid-19 crisis.

India’s Chief Economic Advisor (CEA) KV Subramanian.

India’s Chief Economic Advisor (CEA) KV Subramanian said the government is all set to address supply-side issues in its second relief package, which will include liquidity support to help Micro, Small and Medium Enterprises (MSMEs) tide through the Covid-19 crisis. The second relief package will be announced soon, Subramanian also said.

“The government is working on supply-side measures. One of the key aspects is the liquidity support that firms need in order to tide over their expenses, which include salaries and wages they have to pay,” Subramanian said.

Speaking with India Today TV News Director Rahul Kanwal at a session of the India Today E-Conclave, Subramanian said, “These are some of the considerations that are going in to make sure that supply-side support is provided in this context.”

When asked whether the government will provide wage and income support, the CEA said, “There are many ways in which these kinds of support can be provided. As I said, we are looking at liquidity support, which is a very important aspect, especially for small and medium enterprises.”

He went on to say that there are many ways to provide supply-side support and India’s move may not be similar to what other economies around the globe are doing.

When asked whether government has planned anything for bigger industries, Subramanian clarified that the RBI has already taken the necessary steps to provide liquidity and forbearance.

“Through the various measures that have been taken by the RBI, their concerns are also being taken into account,” Subramanian said.

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