TIL Desk/Business/Mumbai/ 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.
