If all goes well certain sectors would be getting a Covid stimulus package, a relief package to tide over the impact of the second wave. Several sectors have been badly hit in the last few months due to lockdowns imposed by state governments. The government is in the early stages of preparing a package according to a Bloomberg report.
It is most likely that the sectors in focus include tourism, aviation, hospitality sectors along with small and medium-sized companies. The discussions are still in the early stages and no timeline has been shared for the announcement of the economic relief package.
Estimates show that 98 per cent of the country is in some form of lockdown. Small and medium-sized enterprises have also started facing severe losses due to lack of operations and mobility during the second wave. Besides job losses, the rising cost of healthcare during the second wave of the pandemic has also impacted consumer sentiment.
An SBI report recently flagged concern about higher prices of key essential commodities and said that it will impact demand for non-essential goods.
A number of international ratings agencies have downgraded India’s growth forecast for FY22 in view of the rising economic burden on the economy due to the overwhelming second wave of Covid-19 in the country.
The Bloomberg report also suggested that Finance Minister Nirmala Sitharaman had recently held discussions with economists regarding an economic relief package.
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