The Economic impact of the second wave of COVID-19 has started taking a toll on many financially important sectors. Many sectors such as MSMEs, retail, restaurants, malls, hospitality sector, tourism sector, and aviation sector have been hit hard by restrictions imposed by state in the wake of second wave of covid-19 in India and has been impacted very much and would require financial assistance.
Indian government is reportedly preparing a economic relief package for sectors worst affected by a deadly coronavirus aiming to support for reviving the economic growth. The government is considering several measures such as liquidity support, easier compliance norms and taxes relief for different sectors that are facing severe business disruptions due to the second wave of Covid-19 pandemic.
Some of the government bodies are working on proposal to support the sectors worst impacted due to localised lockdown.
The Finance Ministry said is monitoring the economy deeply and will come up with possible relief package soon. The GST council is also looking at GST rate cut for different sector amid this state-wise lockdown. A rate cut will help the sector likewise GST has already reduced cut rates on oxygen cylinders, oxygen concentrators, medical equipments and PPE kits.
The RBI is concerned relatively more with the odds of the second wave of COVID-19 which is sweeping almost the whole of India at present. The GDP growth rate will fallout much more in financial year 2021 also. Recently, the RBI also declared that the loan restructuring scheme for small borrowers, business amid the pandemic, government might tweak the existing Emergency credit line guarantee scheme to provide immediate help to the sectors. The ₹3-lakh-crore Emergency Credit Line Guarantee Scheme is one of the key components of the ₹20-lakh-crore economic relief package announced last May that offered additional working capital finance in the form of an easy term loan to MSMEs.
Besides this sources said that NITI Aayog is working on the focus area of economy and what could be done to stimulate demand in sectors that have been impacted the most by covid-19, also suggest a plan, the Finance Ministry would decide on the way forward.
To mitigate the impact of the pandemic on the economy and sectors, the government and the RBI are also planning and preparing to come out with a series of stimulus package which is likely to be announced soon.