Minimize Omicron impact on economy: CII

New Delhi: Amid fears that the new coronavirus variant may disrupt normal business activity, industry chamber CII on Thursday pitched for coordinated actions by the Centre and state governments to minimize the impact of Omicron on the economy.

“There is obviously some concern about Omicron but I think the general feedback we have is, it is spreading fast but the health impact is milder,” CII President T V Narendran said. The economic impact of the third wave can be minimized if there is a coordinated response between the central and the state governments, he added.

The CII President observed that overall, the recovery in 2021 has been strong for most sectors. However, sectors like hospitality, travel, MSMEs (Micro, Small and Medium Enterprises) and some services were significantly affected by the first and second wave of COVID.

Sharing estimates for economic growth, he said CII’s view is that this financial year’s growth will be 9.5 per cent and next financial year’s growth will be 8.5 per cent. The current fiscal ends on March 31.

Asked about the Centre’s decision to roll back the three farm laws and whether this affects investor sentiment in terms of policy stability, he said: “I think the (government’s) direction is clear, obviously as you move in that direction there will be times when you may have to pause a bit, I think in the Agri Laws it is more like that.”

He further noted that “... at CII we had supported the fact that we felt these (laws) would help in the long run, but we respect the government’s decisions on these things.” He stressed that overall, the intent of the government, the commitment is positive, it is towards reforms.

“I also think across the political spectrum and between the Centre and states there is greater recognition that you do need private sector investments to come in if you want to create jobs,” Narendran said.