In an interview to PTI on 27th March, former finance minister Yashwant Sinha has mentioned that India is already facing high unemployment and that the pandemic has added to the woes. Clarified the Rs 1.7 lakh crore stimulus package announced by the Finance Minister Nirmala Sitharaman, Sinha said, it will cost in exuberance of Rs 1.7 lakh crore, which means fiscal deficit of the government will increase by 1% points(100 bps).
On the spot, RBI Governor Shaktikanta Das said, in view of the impact of coronavirus pandemic, the growth projections of 4.7% for March quarter 2019-20 and 5% for the full fiscal are speculative.
- Many analysts have said that the lockdowns will trim as much as Rs 9 lakh crore of the GDP.
- According to a report by SBI Research’s Ecowrap, GDP growth for 2019-20 could also see a downward revision from 5% to 4.5%, with growth in the fourth quarter of the current financial year at 2.5%.
- Crisil Chief Economist, Dharmakirti Joshi said, the appraisal of 3.5% growth in 2020-21 assumes a normal monsoon and also a subsidizing of the pandemic’s financial impact in the June quarter.
- In a report, Singaporean bank DBS cut its 2020-21 growth forecast to 4%.
- ICRA evaluated the portfolio level data of 10 NBFCs representing about 80% of the overall new MHCV finance market volume.
Indian govt. will need to balance the economic impact of any potential curb in farming and health. This is the harvest season for the Rabi crops and it is a sensitive population given the distressed farmers.
This year, states including Punjab and Haryana are staring at an acute shortage of farmhands since annual migration of laborers from Bihar, UP and MP has been substantially diminished owing to the parts taken to contain the spread of the disease. In this critical situation, we are standing with the government. We are not to believe in rumors and go for panic. Stay tuned with BLOG ROCKS, stay at home, stay safe.