This loan can be given with pre-conditions that businesses will continue to run and there would be no layoffs of workers and after one year it will be converted into a grant if all conditions are met. It also said that a moratorium should be extended for loans taken from mutual funds and insurance companies.

On its part, Assocham has urged the Centre for a stimulus package of at least $200-$300 billion over the next 12-18 months to support the Indian economy.

In a 16-point agenda, the industry body recommended that the Centre institute a stimulus package of at least $200-$300 billion to “thwart one of the deepest global recession expected in the world’s history”.

According to Assocham Secretary-General, Deepak Sood, the chamber believes that in keeping up with most economies of the world to institute stimulus measures with 10 per cent of the Gross Domestic Product (GDP), the Indian economy would need a transfusion of over $200 billion with an ability to go up to $300 billion, over the next 12-18 months.

He stated that out of the corpus, $50-100 billion cash needs to be infused in the system over the next three months, to arrest the loss of jobs and compensate for loss of income. “It will be critical to ensure we proceed with three objectives i.e. immediate assistance to employees and labour through direct transfers and through employers, ensuring that companies have enough cash flow to survive the downturn, and finally stimulating demand and investment to revive the economy through fiscal and tax measures,” the industry body said in a statement.