The Confederation of All India Traders (CAIT) has lauded the stimulus announcement by Union Finance Minister Nirmala Sitharaman on Monday for boosting the purchasing power of government employees. The CAIT said that with such a stimulus package the forthcoming Diwali season is going to boost the domestic demands and will contribute significantly to the rotation of money in cash-starved markets of the country.
The CAIT estimated that this announcement will bring considerable business escalation in the Indian market. It also said that the stimulus package will enable the country to celebrate this year’s Diwali. The package may likely increase the demand for home appliances, electrical and electronic gadgets, kitchen equipment, FMCG products, consumer durables, cloth and readymade garments, mobiles, footwear and gift items.
CAIT national president B.C. Bhartia and secretary general Praveen Khandelwal said that the conversion of LTC benefits to allow claims for expenses made by the government employees coupled with festival advance scheme will empower them to make expenditures on Diwali till 31 March. This will benefit the traders across the country. Bhartia and Khandelwal further added that if the state governments also join hands with the Central government stimulus, the demand in the market will also escalate.
Khandelwal said that post Unlock, commercial markets are under great financial stress due to very low footfall in the markets resulting in a sharp drop in sales. At such a time, the stimulus will certainly prompt government employees to spend more and ultimately the money will come into the markets.