New Delhi: The Narendra Modi government is working on another economic stimulus package with an aim to boost the worst-hit sectors due to deadly Coronavirus second wave and lockdown-like measures, according to a Bloomberg report. While a “V-shaped recovery” was predicted for the Indian economy, the second wave of Coronavirus has proved to be a major setback for sectors which were striving to bounce back following a disappointing year of 2020.
Union Ministry of Finance led by Finance Minister Nirmala Sitharaman has started working on measures to provided a fillip to small and medium-sized companies involved in the aviation, tourism, and hospitality sectors. These entities and sectors have been worst affected by the ongoing Covid pandemic. While deliberations are going on, the timeline for the final announcement is yet to be finalized, the Bloomberg report said.
Covid second wave has proven to be even more virulent and contagious than the first wave that hit the country in 2020. The rising Covid cases and deaths have forced the state governments to enforce lockdown and curfews. Several industrialized states such as Maharashtra, Tamil Nadu, Gujarat, Karnataka had to impose stringent curbs to check the rampant infection rate.
On May 5, Reserve Bank of India (RBI) had announced a slew of measures to tackle the never-seen-before Covid crisis. The measures included “Term liquidity Facility” of Rs 50,000 crore for emergency healthcare services, credit support measures announced for individuals, small businesses and MSMEs, and relaxations on overdraft facility for state Governments.
Earlier in May, Industry chamber PHDCCI had sent a raft of proposals to the Central government and urged the Centre to announce a “substantial” stimulus package to support economic growth amid the re-emergence of COVID-19 cases. The PHD Chamber of Commerce and Industry has submitted 17 recommendations to FM Nirmala Sitharaman on financial and structural support to Micro, Small and medium Enterprises (MSMEs) such as extending the moratorium period and offering concessional rates of interest on borrowings, according to a PTI report.
Notably, last year, Prime Minister Narendra Modi announced a Rs 20 lakh crore Covid-19 economic stimulus package.