Mumbai: As the COVID-19 pandemic has severely impacted the lesser privileged sections of the society, PHD Chamber of Commerce and Industry has recommended that the government should come up with well-designed social protection policies for the vulnerable sections.
In a report on the economic growth of the country, the industry body has said that the management of the economic crisis entails further mainstreaming of proactive and effective risk management into development agenda.
"The coronavirus has widened income and wealth gaps across fault lines of class, race and gender. At this juncture, there is a need of creating well-designed social protection policies for the vulnerable sections of the society, while ensuring fiscal sustainability," it said.
The industry body noted that going ahead, the economic and health risk posed by COVID-19 pandemic and its adverse effects globally and in India call for an increased conjunction of substantially targeted fiscal, monetary, and financial market measures to support affected households and businesses domestically.
Noting that Indian economy is confronted on the fronts of rising cost-push inflation along with a high unemployment rate, it said that implementation of the slew of reforms at the ground level is also crucial to prevent the rising concerns of stagflation.
It further said that more infrastructural spending by the government would help boost confidence further among firms and households, generating stronger consumption, investment, and employment recoveries.
"The continued implementation of expansionary fiscal policy should aim to facilitate the transformation to a more digital and inclusive economy, while managing fiscal and financing risks," it added.