Nirmala Sitharaman Likely to Announce Another Economic Package for Worst-Hit Sectors Amid Recession Fears Due to Lockdown

New Delhi, April 17: With the announcement of extension of lockdown period in India till May 3 amid the Coronavirus pandemic, reports arrived that Union government is mulling for another economic stimulus for the worst-hit sectors. Aiming to ease the recession fears, Union Finance Minister Nirmala Sithraman on Thursday met Prime Minister Narendra Modi and briefed him the situation of the Indian economy.

According to reports, published in the New Indian Express and Times of India, both PM Modi and FM Sitharaman discussed a stimulus package for the worst-hit sectors. Discussions on the massive job losses in sectors such as aviation, hospitality, MSMEs and exports were also discussed in detail, reports said. Lockdown Extension May Shut 25% MSMEs Permanently, Liquidity Crunch Will Choke India's 6.9 Crore Small Traders: Experts.

At the high-level meeting, both PM Modi and FM Sitharaman discussed the finding the economic task force on the impact of the virus outbreak. The economic task force was set up by the Union government in March 2020, which analyses the financial impact of the COVID-19 on India's businesses.

Stating the PM Modi and FM Sitharaman took note of the recent forecasts on lower GDP growth by various agencies, the NIE reports, "The broad discussion was to brief the PM about the preliminary impact of the lockdown. The financial sector was discussed in detail. There were also talks on the impact (of the virus outbreak) on various sectors and then the possible roadmap to revive the economy."

It is to be known that last week, various interational agencies have predicted a fall in India's GDP on account of the pandemic situation. World bank, International Monetory Fund and the Goldman Sachs have pegged India's GDP between 1.5 percent and 2 percent. On the other hand, State Bank of India has reduced the country's financial growth to 1.1 percent. What is Stimulus Package? Know What India Inc Wants From Narendra Modi Government in Hope to Revive Floundering Economy Amid Coronavirus Lockdown.

Earlier in March 2020, Union Finance Ministry announced a stinulus of Rs 1.7 lakh crore for the poor through a mix of direct cah transfer, free LPG cyliners, free foodgrains, and others. Also, concessions in taxes were also announced by the Finance Minister Nirmala Sitharaman. Meanwhile, experts from micro, small and medium enterprise (MSME) sectors warned that Centre's decision of lockdown extension would shut 25 percent MSMEs permanently. The market leaders even claim that the 19-day lockdown extension may choke India's 6.9 crore MSMEs, with exporters taking the biggest hit.

(The above story first appeared on LatestLY on Apr 17, 2020 09:07 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).