The Confederation of Indian Industry (CII) has said that economic activity in India has slowed down significantly across most sectors.
New Delhi| India’s 40-day national lockdown to contain the spread of the deadly COVID-19 pandemic came at a time when economy was already-slowing.
Economists and industry experts are expecting sub-1% expansion rates or even contraction for the country’s GDP. The latest estimations by experts emphasize a depressing situation for the nation’s economy on account of the COVID-19-triggered lockdown, which continues to obstruct businesses globally.
However, before the nation entered the COVID-19 lockdown, the economy was at its worst pace of expansion since the 2008-09 global financial crisis.
The country’s GDP could even shrink 0.9 per cent in case the outbreak extends and spreads further, “leading to prolonged restrictions in existing hotspots and identification of new hotspots,” the Confederation of Indian Industry (CII) has said.
The CII, in its report, titled “A Plan For Economic Recovery”, has estimated economic expansion between a negative 0.9 per cent (contraction) and 1.5 per cent based on three scenarios: “optimistic” (1.5 per cent growth), “base” and “downside risk” (0.9 per cent contraction).
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The Director-General Chandrajit Banerjee while releasing a paper with three scenarios said, “Given the extent of damage to the economy from disruption to business, the GDP growth in FY21 is likely to be the lowest in many decades.”
Industry body CII has called for a “sharp but temporary stimulus”, which can be withdrawn once the economy is back on track. “Without such a step, the budget will continue to bleed for several years, as the revenue shortfall continues.”
Several experts maintain that the measures declared by the government and the RBI fall short of the help needed to aid the nation’s battle against the highly infectious coronavirus pandemic.
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