Corona Virus: Lockdown To Cause $120 Billion Losses
What will be the impact of the 21-day lockdown announced by Prime Minister Narendra Modi in money terms? There is no doubt that traders and businessmen will be badly affected and the government will lose huge revenues. Overall economic growth too will be badly hit.
The experts estimate that the total loss in money terms will be of the order of US $ 120 billion. The GDP estimates too will suffer heavily. The Reserve Bank of India, which is set to unveil its first bi-monthly monetary policy, is expected to cut down the interest rates. Even the stock market is down in the dumps. The latest estimates of the growth rate will be around 3.5 per cent. The RBI has been very proactive in accessing the situation and the steps it took have come in for praise.
Financial rating organisation MK says that the economy is already precariously placed due to the demonetization and the GST. The unorganized sector is said to be bearing the daunt of the attack. The Government might have to come up to provide relief in the form direct benefit transfer and loan reconstruction to them. The finance minister too has said that it is in the process of preparing a financial package to bail out the economy.