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Full recovery of Indian economy likely only by Q3FY22
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SME Times News Bureau | 11 Jun, 2021
As the second wave of Covid-19 and the resultant lockdowns have severely
impacted the livelihoods and the economy, a report by Brickwork Ratings
said that in the current situation full recovery of the economy may
become feasible only by the third quarter of the ongoing financial year.
It
noted that second wave of the coronavirus pandemic has completely
shattered confidence and has put businesses at great risk and
uncertainty.
Although the declining numbers of new infections
provide a glimmer of hope, fast pacing the recovery process is possible
only when new infections are contained and a significant proportion of
the population is vaccinated, it said.
"In this situation,
full-fledged recovery may become feasible only by the Q3 of the current
fiscal," said the report titled 'Covid 2.0: Lingering Uncertainty over
Economic Recovery'.
It also said that time is opportune for the
Centre to announce a clear stimulus package to help the recovery process
and build confidence among economic agents.
"Many have voiced
the need to increase cash transfers to the affected and vulnerable
sections, along with targeted transfers to the urban poor," it said.
Union
Finance Minister Nirmala Sitharaman has already asked the departments
and public enterprises to front load their capital expenditures, but in a
situation where the virus continues to spread fast and restrictions in
various states are still in place, the spending plans can be implemented
only in a staggered manner.
Noting that the most important
measure needed now is to fast track the pace of vaccination, it,
however, added that due to vaccine production capacity constraints,
unfortunately, there is considerable confusion on the vaccine policy
with even the Supreme Court questioning the government on differential
pricing.
The report observed that the Indian Constitution has
placed containing contagious diseases on the concurrent list, and the
Centre has a predominant responsibility in this.
"Vaccination is a
service with enormous externalities, and economic principles dictate
that the Centre should bear the entire cost of universal vaccination,
although it can use the services of the states and private healthcare
facilities to vaccinate people," it said.
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Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
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66.20
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64.50 |
UK Pound
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87.50
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84.65 |
Euro
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78.25
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75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
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