The economic schemes announced by the Prime Minister Narendra Modi during his New Year’s speech will benefit the most vulnerable sections of the society especially farmers, urban poor, women and senior citizen, industry body Federation of Indian Chambers of Commerce and Industry said.
"There could not have been a better start to the New Year and Ficci strongly welcomes these moves and compliments the government for its long term vision for the nation," the chamber said in a statement.
"Any support extended to the housing sector will have a multiplier effect on the economy given the forward and backward linkages of this sector. We can thus look forward to better economic performance in the coming years."
Ficci noted that support rendered to the famers by way of interest payments exemption on loans and provision of additional funds will offer much needed reprieve to the agriculture sector.
"Small businesses and MSMEs (Micro, Small and Medium Enterprises) that are the backbone of our industrial economy and the real generators of jobs have also been brought into focus by the Prime Minister," the statement said.
"Enhancing the limit from 1 crore to 2 crore for credit guarantee and increasing the cash credit limit from 20 per cent to 25 per cent will help them in their working capital requirements and keep the trade moving at a time when re-monetisation process is still ongoing."
The Associated Chambers of Commerce and Industry of India pointed out that new announcements will have a combined positive impact on the overall economic growth.
"Emphasis on digital economy and the Prime Minister's advice to the banks to empower MSMEs and extend financial inclusion would eventually help economic growth with social justice," said Sunil Kanoria, President of Assocham.
On electoral reforms, Kanoria said: "Specific measures for transparency in election funding should be worked out."
On the banking industry front, Arundhati Bhattacharya, Chairman of State Bank of India (SBI) said that initiatives aimed at benefiting the lower income segments of the country was a welcome move by the government.
"It is fairly evident that the government is serious about comprehensive inclusion. Low cost housing should witness growth in the medium to long term.
"The government's commitment to a less cash society will also aid in reforming the tax structure for the better," she said.
(With IANS inputs)