Uday Kotak, the newly-appointed President of the Confederation of Indian Industry (CII), said 2020 is a unique year and it is time to think outside the box.
Kotak said the CII is committed to the government's Aatmanirbhar Bharat Abhiyan.
Prime Minister Narendra Modi had announced the Rs 20 lakh crore economic stimulus on May 12.
The Managing Director of Kotak Mahindra Bank said the COVID-19 outbreak has impacted three crucial economic agents - the individual, businesses, and the government.
Kotak said it is difficult to forecast India's gross domestic product (GDP) during the current scenario.
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Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.
The government probably needs to spend more, he added. According to Kotak, any impact that cannot be absorbed by the government will fall on the financial sector.
Kotak also said it is important to find a balance between loss of lives due to the novel coronavirus and loss of livelihood during the lockdown.
"There is a need to reimagine India from healthcare point of view," Kotak said.
Kotak also said there is a need to upgrade the quality of medical research, and raise investment in healthcare professionals.
During the lockdown, several migrant workers have left cities and travelled to their hometowns.Speaking about migrant workers, Kotak said this is the first time he has seen "reverse migration" in India.
Kotak also said it is important to examine ways in which rural areas can contribute significantly to economic growth.
He added that there is a need to push private investment and exports in India.
"Over the last few years we have been disproportionately dependent on government spending, followed by consumption as the core of our growth," Kotak said.