Businesses on Thursday asked the government for a stimulus package of over Rs 1 trillion to restart investments and revive the economy.
Industry leaders, who met Finance Minister Nirmala Sitharaman in New Delhi for three hours, said the government will soon take action to boost economic growth.
"The economy requires a critical intervention by introducing a stimulus package. We have suggested for a package of over Rs one lakh crore," said B K Goenka, president of business lobby Assocham.
"It was decided that the government is going to take action very soon to revive the industry and it is a matter of sentiments. We got positive feedback from the finance minister," said JSW Group Chairman Sajjan Jindal.
The minister in clear terms gave assurance that "very soon" solution would be found, he said, adding the industry is suffering from issues in sectors like steel, NBFC, and automobile.
Piramal Enterprises Chairman Ajay Piramal the industry raised several matters such as reluctance of banks to lend to the industry.
"It is not that there was a lack of liquidity in the banks, but lending was not taking place. There is stress on the economy as far as NBFC sector was concerned," he told reporters after the meeting.
He added that the NBFC issue is impacting sectors like auto, home loan, and MSME. "I am told that there will be action soon. So, we will wait for that," he said.
The government told the business leaders that the punitive penal provisions for non-compliance of CSR spending norms under the companies law would not be pursued.
Piramal said that the industry demanded that oversight on CSR spending should not result in any imprisonment.
Further Vice-President CII T V Narendran said that the government sought views on ways to further stimulate the country's economic growth.
"Across the board, we discussed the key issues," he said adding slowdown in the auto industry would have an implication on the steel sector.
Sandip Somany, president of business lobby FICCI, said transmission of cut in interest rate to consumers by banks is a big issue.
"Banks must be encouraged to pass on the benefits of rate reduction to consumers and borrowers. We are hopeful of further rate cut. It is encouraging that the RBI has reduced rates by cumulative 110 basis points," he said.