The impact of COVID-19 on the Indian economy is still unclear and many probabilities are being laid out by experts. The best and worst-case scenarios are evaluated. Lately today India’s Chief Economic Advisor, K V Subramanium, said the GDP growth for India likely to range between 1-2 percentage due to the COVID-19 crisis and lockdown that followed, ANI reported.
He further expressed confidence over the economy recovering in the second quarter with streamlining of supply chains and migrant workers likely to get back to work. He also mentioned difficulty in finding the exact impact in the job market but expressed confidence over good companies retaining most of their workforce with minimum wage cuts and migrant workers find better lifestyles, education, and healthcare facilities in Indian cities than in their hometowns. He also said that the global economic scenario is weak due to which Indian exports are expected to take a hit.
“It is, however, time for Indian industries to revamp their strategies, adopt modern technologies, and gear up to compete in global markets as many multinational corporations look towards shifting their manufacturing base out of China” he said.
Second Economic package for revival of Indian Economy
At times when India incorporated is waiting for the announcement of a second economic package from the union government the Chief Economic Advisor did comment on queries related to the stimulus. He said India should consider its own ground realties than lookout for other countries like Britain and the United States to formulate strategies for economic revival.
Further on the reaction of stock markets towards COVID-19 and expectation of investors over the second stimulus package, he said the current market volatility doesn’t reflect the strong fundamentals of the Indian economy and looks for more near term profits in high growth areas.
The Chief Economic Advisor was included in the advisory council of the 15th finance commission to advise on any terms of reference and implementation.
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