Last updated on March 27, 2020
The nation’s financial growth is probably going to fall sharply to 2.6 per cent in 2020-21 due to lockdown amid the coronavirus pandemic, a analysis report mentioned on Thursday.
According to a report by SBI Research’s Ecowrap, GDP growth for 2019-20 might additionally see a downward revision from 5 per cent to 4.5 per cent, with growth in the fourth quarter of the present monetary yr at 2.5 per cent.
“What can be affect on India’s GDP due to such a lockdown?… We thus peg our 2020-21 GDP estimate at 2.6 per cent, with a transparent downward bias, with first quarter of the following fiscal GDP numbers witnessing a contraction,” the report mentioned.
Prime Minister Narendra Modi had introduced a whole lockdown throughout the nation for 21 days from Wednesday, asserting that social distancing is the one approach out for the nation in its decisive battle towards coronavirus.
The loss of life toll due to COVID-19, the illness brought on by coronavirus, in India rose to 16 on Thursday and the variety of optimistic instances elevated to 694, in accordance to the well being ministry.
“2019-20 fiscal GDP estimates could also see a downward revision from 5 per cent to 4.5 per cent with fourth quarter of current GDP growth at 2.5 per cent,” it added.
According to the report, the entire value of lockdown is no less than Rs 8.03 lakh crore in nominal phrases, an earnings lack of Rs 1.77 trillion and a loss in capital earnings of Rs 1.69 rillion.
Stating that the earnings loss would be the highest in agriculture, transport, lodges, commerce and schooling, the report mentioned, “However, the economic system might recuperate doubtlessly sooner the shortly the stimulus programme is in place.
Coronavirus lockdown: Govt unveils Rs 1.7-trillion package deal for the poor
A few days after the three-week nationwide lockdown got here into drive, Union Finance Minister Nirmala Sitharaman introduced a Rs 1.7-trillion food-security and income-transfer package deal for the city and rural poor.
The package deal contains free foodgrain for 800 million individuals for 3 months, insurance coverage cowl for essential-service suppliers, entrance loading PM Kisan instalments, and improve in wages below the employment assure programme.
Sitharaman additionally promised a one-time fee to girls Jan Dhan accountholders and economically backward widows, pensioners, and differently-abled; further free cylinders for Ujwala scheme beneficiaries; a hike in collateral-free loans for self-help teams; operationalising a development employees’ fund; and contributing to organised sector employees’ worker provident fund accounts.