Much of the government support is in the form of credit guarantees or credit lines, having minimal impact on government finances, the rating agency said in a press release. By choosing to do so, India’s economic package is more like the package of Brazil, Germany, France, Italy Japan, Korea, Spain and United Kingdom. Several other countries such as Australia, Canada, China, Indonesia, Mexico, Russia, Saudi Arabia, South Africa, Turkey and United States however have chosen to focus more on spending and revenue measures, to address the fallout of COVID-19 pandemic, it noted. Ind-Ra believes an appropriate demand-side measure is as important as supply-side measures. This is not to say that supply-side issues did not need government support. It indeed was needed especially to restore and augment the supply chain of the economy where micro, small and medium enterprises (MSMEs) play an important role, Ind-Ra said. However, the near-absence of demand-side measure in the economic package will jeopardise recovery even in fiscals 2021-22 and 2022-23 and may even lead to a second round impact on the economy, which means even if the supply side gets restored on account of the various measures announced by the government and the Reserve Bank of India, it may soon run into difficulty due to the lack of adequate demand for goods and services, it said. Salary cuts, job losses, reverse migration due to the lockdown have only added to the dwindling consumption demand, already reeling under the reduced income growth of households coupled with a fall in savings and higher leverage over the past few years. The COVID-19 related lockdown and its impact on economy and livelihoods have only aggravated the sagging consumption demand, it added.
Fibre2Fashion News Desk (DS)
| On 15th Jun 2021
Prime Ministers Scott Morrison and Boris Johnson have agreed in...
The German parliament passed a law last week that warrants large and...
| On 15th Jun 2021
Revenue, profits, output, online retail sales and exports of major...
There was a certain switch, but it was not 100% pandemic related
Value of 'Made in India' should get more importance
Opportunity now to reimagine processes & systems in a digital environment
Dhirubhai & Arvind Shah
It supplies synthetic fabrics to top international brands like M&S,...
Established by <b>Shyam Gupta</b> in 1978, Gargee Designer's (GD) offers...
Seraphine is a British maternity brand providing affordable luxury fashion ...
Dieffenbacher India Pvt Ltd
Germany-based Dieffenbacher Group is a producer of high-quality composites ...
INDA, the Association of the Nonwoven Fabrics Industry, serves hundreds of ...
University of Rhode Island
Assistant professor Daniel Roxbury and former URI graduate student...
Artisan Saga, founded by Kaushik Rajani and Seema Agrawal, is an online...
Label Archana Jaju
<b>Archana Jaju</b>’s Hyderabad-based eponymous label works with artisans...
Ramya Rao & Kavea R Chavali
<div>The journey of Kalaneca (kala-Art, Neca- Nikaah) formally began in...
Letter to Editor
Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.
Subscribe today and get the latest information on Textiles, Fashion, Apparel.