New Delhi: PM Modi's initiative of setting up of an Economic Response Task Force under Finance Minister Nirmala Sitaraman is likely to announce a stimulus package for Covid 19 affected sectors including tourism, hospitality, aviation and MSME in the coming weeks.
It may also propose a reduction of GST rates to the council. On cards are also a likelihood of an extension of the moratorium on the declaration of NPA for MSMEs and reclassification of loans by the RBI. The revenue cushion offered to India by the slump in global crude oil price is likely to be used to fund the stimulus.
As per the sources in the Finance Ministry, the immediate members of the task force which is yet to be formed will comprise Minister for Civil Aviation Hardeep Singh Puri, Minister for MSME Nitin Gadkari, Tourism Minister Prahlad Patel and Animal Husbandry Minister Giriraj Singh.
The Finance Minister along with the Finance Secretaries has met individual ministers on Friday to get their feedback on the impact of the virus. During the discussion, Giriraj Singh expressed huge losses to the poultry industry.
The FM is likely to meet other ministers on Saturday again to firm up the action plan to deal with the crisis.
Read more:COVID-19 taskforce: FM takes stock of situation, holds meeting with four ministries
The task force will take feedback from all other major sectors of the economy which have been affected by the virus in the coming weeks and announce a stimulus package to take on the adverse impact on these sectors.
As India is in the stage two of the pandemic, PM Modi on Wednesday indicated in his address to the nation that the country should be prepared for stiffer measures in the coming weeks as the stage three is yet to come.
The adverse impact by the pandemic Covid-19 is poised to throw the Indian economy into a tailspin. With supply chain disruptions from China to cutdown on business activities including the closure of malls, restaurants and retail shops and fallout of lack of tourism, in an economy that was already in a midst of slowdown with the growth earlier estimated to a low of 5.5 per cent.
Now with the Covid 19 impact all major economies are anticipated to slip into a recession even as India is feared to do no more than 5. 3 per cent in GDP for fiscal 2020 as per CRISIL. As per ILO, the world is poised to see job losses to the tune of 25 million due to Covid-19.
All major economies like US, UK, Spain, Germany, Australia, Singapore, Japan & South Korea have already announced a stimulus package considering the adverse impact of Covid 19 pandemic.
US President Donald Trump has already promised cash handout of $1000 to Americans as a part of his $1.2 trillion stimulus plan for Covid 19.
(Article by Sanjay Thapa)
