Bengaluru, Aug 4 (KNN) The Emergency Credit Line Guarantee Scheme (ECLGS) should be made as a permanent government guarantee for micro, small and medium enterprises (MSME) loans, said Sanjiv Bajaj, President, Confederation of Indian Industry (CII).

He stressed on credit availability as a major limitation to create a strong and solid MSME system.

Addressing the media for the first time in Bengaluru after taking over as President of CII, Bajaj said that the government should consider a reduction in the rates of personal income tax.

“In its next push for reform as this would increase disposable incomes and revive the demand cycle,” he added.

Giving suggestion to support economic recovery, he said that India needs to boost its forex reserves to revive the economy especially in view of the capital outflows by foreign institutional investors, prompted by an uncertain global economic environment.

Bajaj also called for the extension of the concept of PLI to services sectors in the form of Employment Linked Incentive Schemes (ELIs).

Sharing CII’s roadmap for the future he said, CII has planned several new initiatives in the current year aligned with the current CII theme of Beyond India@75: Growth, Competitiveness, Sustainability and Internationalisation.  (KNN Bureau)