FM Nirmala Sitharaman
FM Nirmala Sitharaman
Photo Credit: PTI

The govt is preparing a stimulus package for sectors worst-affected during the pandemic, according to news reports. The finance ministry is working on proposals to boost a slew of sectors: tourism, aviation, hospitality, small and medium-sized companies, said Bloomberg citing sources.

A British brokerage on Tuesday cut India's FY22 GDP growth estimate by a sharp 0.80 percent to 9.2 percent, saying the economic impact of the second wave of infections has been deeper than initially expected.

Barclays chief India economist Rahul Bajoria also mentioned the slow pace of vaccinations in the country and the rolling lockdowns across many states for the estimate.

The second wave of Covid-19 has dented the recovery momentum of automobile sector's Original Equipment Manufacturers (OEMs) and auto-ancillaries, said ratings agency ICRA.

"Not only have many auto OEMs and auto ancillaries resorted to plant shutdowns as a restrictive measure, but also automotive dealerships across regions have not been operational in light of regional restrictions imposed by various states and local authorities in order to curb the pandemic," the ratings agency said.

Around 98 per cent of the country is in some form of lockdown, resulting in a drop in both rural and urban employment.

(To receive our E-paper on whatsapp daily, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

Free Press Journal

www.freepressjournal.in