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Govt’s Rs 20 lakh crore package will not create demand: SIAM
May-19-2020

Auto industry body -- Industry body Society of Indian Automobile Manufacturers (SIAM) has said that the government's economic stimulus package will not create demand. Finance Minister Nirmala Sitharaman over May 13-17 announced in five tranches details of the Rs 20 lakh crore package. It said while noting that the agriculture focused package may benefit the automobile sector indirectly, the auto sector needed an immediate stimulus to boost demand which has not happened.

It added ‘we could see a de-growth between 22-35 percent in FY21.’ Further, it said that there is a need for direct intervention to stop job losses and create demand. Dealers need financial support and should be included in the MSME definition.

In order to help the economy battling global slowdown and the coronavirus pandemic, Prime Minister Narendra Modi on May 12 had announced that the government would outline an Rs 20 lakh crore package.

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