The brokerage company Bernstein said in a statement that its macro economic index is showing signs of a decline in economic activity during April and May.
PM Narendra Modi.
In view of the looming threat of economic revival due to COVID-19 Pandemic, the government may announce a Stimulus Package immediately after the lapse in lockdown. The brokerage company Bernstein said in a statement that its macro economic index is showing signs of a decline in economic activity during April and May. The government can bring this package to the small businesses and self-workers most affected by the lockdown.
The brokerage company said, there has been a 4 per cent decrease in power consumption and 16 per cent reduction in fuel consumption in May. There is a 16 per cent reduction in e-waybills. Due to the closure of retail shops, production of some categories of factories has come down.
Promotion package may be announced if lockdown is removed
The closure of retail outlets is limiting the ability to increase production, Bernstein said. Supply management, however, did not have that much of an impact, as restrictions on factory operations are less in most states.
He said, we believe that the government can announce another stimulus package if the lockdown is lifted. The SME sector and self-employed employment have been the most affected due to Corona. The lower middle class may have been affected, but this time the consumer sentiment in the upper-middle class may be weak and this aspect needs attention.
Condition deteriorating slightly on macro economic front
Bernstein said that what we are seeing this time, there is nothing shocking for the economy. On the macro economic front, the situation is deteriorating slightly but at a lower pace than the lockdown imposed last year. This time too, the economy may slow down for a few months, because the effect was seen on the economy even a few months after the lockdown was removed.
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