Lockdown may be removed Package: stimulus package will boost economy; Economy will be supported by incentive package
- Economic Indicators Indicating a decline in economic activity in April-May.
- Fuel consumption in the country decreased by 16 percent in May.
- The government can provide relief to small businesses and those engaged in self-employment.
The government may announce an economic package after the lockdown is lifted. The reason for this is that due to the second wave of Corona, the recovery in the economy has suffered badly. In such a situation, an economic package can be announced to support the economy. Last year, the government announced a package of Rs 20 lakh crore in view of the impact of Corona on the economy.
Signs of decline in economic activity
Brokerage company Bernstein said in a statement on Wednesday that its macroeconomic index is showing signs of a decline in economic activity during April and May. The government can bring this package for small businesses and self-workers most affected by the lockdown.
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Reduced power and fuel consumption
The brokerage company said, “There has been a decrease of four percent in energy consumption and 16 percent in fuel consumption in May. The e-way bill has come down by 16 percent. Due to the closure of retail outlets, production of some categories of factories has come down. ”
Closure difficult due to closure of retail shop
“The closure of retail outlets is limiting the ability to increase production,” Bernstein said. Supply management, however, did not have that much of an impact, as restrictions on factory operations are less in most states. ”
Expecting measures to support MSMEs
The brokerage company said that we believe … the government can announce another stimulus package if the lockdown is lifted. The SME sector and self-employed employment have been the most affected due to Corona. The lower middle class may have been affected, but this time the consumer sentiment in the upper-middle class may be weak and this aspect needs attention. ”
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Economy can remain slow
Bernstein said that what we are seeing this time, there is nothing shocking for the economy. On the macroeconomic front, the situation is deteriorating a bit. But at a lower pace than the lockdown imposed last year. This time too, the economy may slow down for a few months, because the effect was seen on the economy for a few months after the lockdown was removed.
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