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‘If a nationwide lockdown is imposed in India for a month, the economy will suffer a big loss, GDP may fall by 2 per cent’

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US brokerage company Bofa Securities has expressed the hope that a ‘lockdown’ will be imposed at the local level to prevent the spread of the COVID epidemic.

Brokerage companies slash GDP growth rate estimate

American brokerage company Bofa Securities cautioned that if a month-long nationwide lockdown is imposed in India, then the gross domestic product (GDP) could fall by up to 2 per cent. The brokerage company has expressed the hope that a ‘lockdown’ will be imposed at the local level to prevent the spread of the COVID epidemic. Analysts at BofA Securities said in their report that there were 35,000 cases of COVID a month ago, which has now increased by seven times to more than 2.61 lakh. This poses a risk for what was just the initial recovery phase.

According to the report, it remains to be seen whether the second wave of COVID-19 will end at national level without lockdown. At the national level, if a lockdown is imposed even for a month, GDP may suffer from 1 to 2 per cent.

These measures are being taken to prevent infection

It states that, given the high economic cost, we estimate that the central and state governments strictly enforce the regulations (masks, reasonable distances, etc.) for prevention of COVID-19, through night curfew and local lockdown Will try to curb this.

Explain that due to Coronavirus Pandemic, the economy had declined by 23.9 percent during the first quarter (April-June) of the last financial year.

Government is working to save people’s lives and livelihood

Finance Minister Nirmala Sitharaman also sought suggestions from businessmen to avoid damage to the country’s economy from the second wave of corona virus epidemic. Government of India is preventing COVID at various levels. Working together with state governments to save lives and livelihoods.

Government will not impose lockdown on a large scale

The finance minister had made it clear last week that the government will not impose lockdown on a large scale and local containment will be resorted to only to break the series of COVID-19.

Brokerage companies slash GDP growth rate estimate

As the COVID-19 transition spreads again, major brokerage companies have lowered India’s GDP growth estimate to 10 per cent. Nomura has lowered the economic growth rate estimate for the current financial year from 13.5 per cent to 12.6 per cent, while JP Morgan has now projected 11 per cent growth from 13 per cent earlier.

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(With language input)

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Bhagyashree Soni
Bhagyashree Soni is a software engineer with soft writing skills. She is a degree holder from the International School of Entrepreneurial Leadership. She has been a state-level badminton champion and chess player. A woman with a forthright attitude enjoys her writing passion as her chosen career. Writing in the context of feminism, social-cause and entreprenurship is her forte.
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