Assocham, India's apex industry body, described the new initiatives announced by Prime Minister Narendra Modi as "extremely positive for the Indian economy". Assocham president Sunil Kanoria said both the 60-day interest waiver for farmers who have taken loans from district cooperative banks and primary credit societies, and the Rs 20,000 crore additional funding to NABARD for loans to farmers would boost the farm sector and the rural economy.
Kanoria said the interest subsidy on loans for low-cost housing and the push towards low-cost housing for the poor and middle classes will not only revive consumer confidence but also rev up the retail portfolio of banks and non-banking financial institutions.
Kanoria asked for effective implementation of the various schemes announced by the prime minister, including the credit guarantee for loans to micro, small and medium enterprises, to drive economic growth. He said that all these actions should be complemented with substantial reduction in individual and corporate tax rates, and more reduction in interest rates, to fuel economic growth.