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21-day lockdown to derail India’s economic juggernaut: Report

Media reports on Wednesday claimed the government may announce a financial stimulus worth $20 billion (Rs 1.5 lakh crore) to help revive the economy.

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National debt under Modi govt surges

New Delhi, March 25 : As the Indian economy eagerly awaits a financial package to prevent the COVID-19 pandemic from causing major harm, a new report said on Wednesday that the 21-day nationwide lockdown will result in a direct output loss of nearly 4.5 per cent, with further indirect effects.

Finance Minister Nirmala Sitharaman has said that the government is currently addressing the compliance related issues and an economic package covering issues of concern to the industry would be announced separately later.

According to Tokyo-based financial services group Nomura, nearly 75 per cent of the economy will be shutdown, resulting in a direct output loss of approximately 4.5 per cent.

“Additionally, there will be indirect effects such as the persistence of public fear factor (even after the lockdown ends) — a high risk that the livelihoods of the predominantly unorganised workforce will be hit and a sharp increase in corporate and banking sector stress, which are likely to further weigh on growth is beyond Q2 in H2 2020,” the report warned.

While the states have been largely leading the fiscal charge against COVID-19 so far, the report said it expects the Central government to soon announce a stimulus package of around 0.7-1.1 per cent of the GDP.

“Along with the growth hit and poor tax collections, we expect the fiscal deficit for FY21 (year ending March 2021) to balloon by over 1 per cent of GDP from the 3.5 per cent target set in the budget (more than the escape clause leeway of 0.5 per cent of GDP).”

Monetary policy proactiveness has been missing so far, it said.

However, “we expect at least 50bp of policy easing on or before the April 3 policy meeting, accompanied by a host of liquidity injections and unconventional policy measures to reduce financial sector tightness, including large scale open market operations.”

The government’s concern is that India is reaching the exponential part of the epidemic curve, with the number of COVID-19 cases currently tracking 562 (512 are active, and 11 deaths so far), which is now an average daily growth rate of around 23 per cent.

In the top 2 infected states of Maharashtra and Kerala, the number of cases have breached 100, while most states are seeing their numbers increase.

“Experience from other countries show that this could be the inflection point for a sharp jump in cases from here on,” the findings showed.

Given India’s large population, limited testing and contact tracing facility and relative scarcity of quality healthcare, it is understandable that the government is attempting to contain the spread rather than move to the mitigation stage, the report mentioned.

Media reports on Wednesday claimed the government may announce a financial stimulus worth $20 billion (Rs 1.5 lakh crore) to help revive the economy.

The Indian economy that had already slowed down before the outbreak of novel coronavirus, is in for a more difficult period in the coming months with businesses almost coming to a standstill.

The Finance Ministry and the RBI have taken several steps to ensure that liquidity in the system remains intact. But the industry has called for more stimulus measures to fight depression like conditions setting in the economy.

The report said that the lockdown is essential to slow COVID-19 transmission, “but this will come at a very heavy economic cost in the short term with potential medium-term spillover effects”.

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Nizamuddin Railway station employee found corona positive

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New Delhi, April 8 (IANS) A 59-year-old employee of Indian Railways who is posted at the Nizamuddin station has been tested positive for coronavirus. The man has a few months left for retirement.

According to the Northern Railway, he was undergoing treatment at Central Hospital of Northern Railway, due to which 15 employees including doctors have also been infected in this hospital. This employee came to the hospital on March 31 and thereafter on April 2 due to poor health. Initially, there were no traces of coronavirus in him.

Deepak Kumar, Public Relations Officer of Northern Railway, said: “On April 2, when the man came to be hospitalized, the doctors suggested him to undergo MRI and CT scan tests. On April 6, when his report came, he was found positive for coronavirus. The patient has been sent to Rammanohar Lohia Hospital.”

Meanwhile, all 15 people of the Northern Railway Central Hospital, who came in contact with the corona-affected railway staff, have been kept in isolation. These people include doctors and nurses.

The infected railway staff works as a supervisor at the Nizamuddin railway station, hence, doesn’t come in direct contact with the people.

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Crowds at UP banks as lockdown extension appears possible

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Lucknow, April 8 (IANS) With newspapers and television channels announcing the possibility of the national lockdown being extended, people, on Wednesday, started rushing to the banks that witnessed substantial crowds.

The police in Uttar Pradesh had a tough time ensuring social distancing outside the banks.

The bank staff also tried to persuade the customers to stand at circled spots to ensure social distancing. However, since most banks do not have shades or porches, the customers were obviously uncomfortable standing in the sun.

Most of the customers at nationalized bank branch in Hazratganj area were senior citizens.

One of them said, “I have been standing here for about 40 minutes. There is no bench or chair for us. Moreover, the sun is right above our heads. There is no problem in waiting but some facilities should be made for senior citizens.”

Another customer, meanwhile, admitted that he had come to withdraw money after learning that the lockdown is likely to be extended.

“My pension has not come till now but I am going to withdraw money from my account because everything is being sold at a premium in the lockdown,” he said.

A police inspector, managing crowds outside another bank, said, “We understand their problem but they should also understand the need for social distancing. We are not enjoying this duty but rules have to be followed.”

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Markets open in red on Wednesday

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Mumbai, April 8: The 30-scrip Sensitive Index (Sensex) on Wednesday opened on a negative note during the morning session of the trade.

The Sensex of the BSE opened at 29,701.92 points and touched a high of 29,916.22. The Sensex touched a low of 29,602.94 points.

On Tuesday the Sensex closed at 30,067.21 points.

The Sensex is trading at 29,743.07 down by 324.14A points or 1.08 per cent.

On the other hand, the broader 50-scrip Nifty at the National Stock Exchange (NSE) opened at 8,688.90 points after closing at 8,792.20 points.

The Nifty is trading at 8,728.60 points in the morning.

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