New Delhi: The government has announced a total economic package of Rs 20 lakh crore, with agencies predicting a collapse in the Indian economy.
The government had announced a total economic package of Rs 20 lakh crore to boost the country’s economy. Moody’s Investors Service, the world’s leading rating agency, feels that the negative impact of Covid-19 cannot be completely eliminated by the economic package. At the same time, the American company Goldman Sachs estimates that the Indian economy will shrink by five per cent during the current financial year. This will be India’s worst performance in a year.
What did Moody say?
Moody’s Investors Service said the government’s recently announced Rs 20 lakh crore economic package would reduce the risk to financial institutions’ assets, but would not completely remove the negative impact of Covid-19. “Government measures will help reduce the risk to assets in the financial sector, but they will not be able to fully curb the negative effects of the Corona virus epidemic,” Moody’s said.
Regarding the MSME package, the rating agency said the sector was under stress even before the slowdown in economic growth, the outbreak of the Corona virus and the cash crunch. At the same time, in commenting on the actions of non-banking companies, Moody’s said that the assistance is far less than the immediate need of these companies.
5% decline in the economy
According to US brokerage firm Goldman, India’s economic performance will be the worst in any one year, from Nehru to Modi. India’s gross domestic product (GDP) in the first quarter (April-June) compared to the fourth quarter (January-March) of the previous financial year. Could fall 45 percent. This situation has arisen due to the continuous shutdown of economic activities due to the lockdown.
Goldman says GDP will improve when it starts working. Earlier it had forecast a decline of 0.4 per cent, which has since been increased to five per cent. Japanese company Namura has forecast a reduction in this range.
What did Fitch Solutions say?
Similarly, ratings agency Fitch Solutions said the Rs 20.97 lakh crore economic stimulus package announced by the government to address the Covid-19 crisis was not able to meet immediate concerns. According to Fitch Solutions, the actual monetary stimulus provided under the package is only one per cent of GDP, while it is claimed to be 10 per cent of GDP. Let me tell you that many agencies are forecasting a slowdown in the Indian economy. Even after giving a package of Rs 20 lakh crore to the Prime Minister, Modi’s economic collapse is likely.