Wednesday, June 16, 2021
News

Full recovery of Indian economy likely only by Q3FY22: Brickwork

   SocialTwist Tell-a-Friend    Print this Page   COMMENT

New Delhi | Friday, 2021 9:45:06 PM IST
As the second wave of Covid-19 and the resultant lockdowns have severely impacted the livelihoods and the economy, a report by Brickwork Ratings said that in the current situation full recovery of the economy may become feasible only by the third quarter of the ongoing financial year.

It noted that second wave of the coronavirus pandemic has completely shattered confidence and has put businesses at great risk and uncertainty.

Although the declining numbers of new infections provide a glimmer of hope, fast pacing the recovery process is possible only when new infections are contained and a significant proportion of the population is vaccinated, it said.

"In this situation, full-fledged recovery may become feasible only by the Q3 of the current fiscal," said the report titled 'Covid 2.0: Lingering Uncertainty over Economic Recovery'.

It also said that time is opportune for the Centre to announce a clear stimulus package to help the recovery process and build confidence among economic agents.

"Many have voiced the need to increase cash transfers to the affected and vulnerable sections, along with targeted transfers to the urban poor," it said.

Union Finance Minister Nirmala Sitharaman has already asked the departments and public enterprises to front load their capital expenditures, but in a situation where the virus continues to spread fast and restrictions in various states are still in place, the spending plans can be implemented only in a staggered manner.

Noting that the most important measure needed now is to fast track the pace of vaccination, it, however, added that due to vaccine production capacity constraints, unfortunately, there is considerable confusion on the vaccine policy with even the Supreme Court questioning the government on differential pricing.

The report observed that the Indian Constitution has placed containing contagious diseases on the concurrent list, and the Centre has a predominant responsibility in this.

"Vaccination is a service with enormous externalities, and economic principles dictate that the Centre should bear the entire cost of universal vaccination, although it can use the services of the states and private healthcare facilities to vaccinate people," it said.

--IANS rrb/sn/sdr/

( 361 Words)

2021-06-11-15:50:05 (IANS)

 
  LATEST COMMENTS (0)
POST YOUR COMMENT
Comments Not Available
 
POST YOUR COMMENT
 
 
TRENDING TOPICS
 
 
CITY NEWS
MORE CITIES
 
 
 
MORE BUSINESS NEWS
Coal India to cut manpower by 5% annuall...
Dalmia Bharat Sugar to double ethanol ca...
Anarock brings Upflex to India for flexi...
Allow Mumbai restaurants to reopen, hote...
Fixed line Internet service providers co...
Finance Ministry, Infosys officials to t...
More...
 
INDIA WORLD ASIA
Right to protest can't be termed terrori...
Help the common man, Stalin tells newly-...
NIA files charge sheet against Kerala ma...
Curtains down on Italian marines case as...
Cong seeks judicial probe into 'illegal'...
NSUI urges Goa govt to hold online exams...
More...    
 
 Top Stories
Telangana extends summer holidays f... 
JioFiber Postpaid plans launched sa... 
'Vighnaharata Ganesh' lets viewers ... 
Lockdown eased in Kerala, local TPR... 
Why 'Broken But Beautiful 3' direct... 
Help the common man, Stalin tells n... 
NIA files charge sheet against Kera... 
Kartik Aaryan spreads awareness on ...