Toning the sides of the losses, the economy will move forward with baby steps. it looks like India’s efforts in investing for the long term remains undisturbed by the short term challenges we are facing today.
The response from the policymakers has been head straight that the economical slowdown and short term challenges of COVID – 19 is a challenge to be catered at the moment.
The unexpected global hit, COVID – 19 is a real eye-opener in many aspects. As for today, we stand by 50% of the digital trajectory for business. For the rest, 50% that aren’t digitised and on whose the country’s economy, production is posing on is in stand by position.
The shock wave
After the chaotic hit and the downfall of the economy, the government and the private sectors are striving with baby steps to recover the economy in solitude. The disposition of funds only to the business culturing in the crisis can decentralise the economic gauge.
Economic stability is still a question with the rise in a number of cases per day! Since the nationwide lock and post lockdown scenes have narrowed the growth with a 5 day compounded daily growth. But we need to outweigh the critical condition the country’s COVID-19 infection status was in the month of March.
The infection rate has slowed down from 18.0% to 7.0%, which is a deliberate change in the rate.
Are we prepared for another COVID – 19 waves?
Financial experts say, the present measures to revive the economy seem very less and the need to put forth more measures is high.
” However, a debate fires up if and whether India has the fiscal room to stand up uncompromised with the situation by doing whatever it takes to keep the economy in place. On the other hand, it’s important to note that the size of India’s support program is by far the lowest, as a percentage of GDP, among the top 10 global economies.” stated as per the resources.
RBI took the recent measures in neutralising the losses of many, which are as stated below,
- Released 3.73 billion INR to support the liquidity.
- Allowed moratorium of three months for all the institutions.
- Aiming at liquidity to non-banks, only to encourage the transmission of credit.
For those investors shall be aware of the risks that might rebound during the second wave once the economy reopens completely. Especially, if the government were to provide a lower than expected level of fiscal support.
Yet it is important to see the underlying foundation that these short term challenges will fade away before the positive long-term market view.