NEW DELHI: The nationwide lockdown will negatively impact the economy in Apr-Jun, but the economic activity will pick up "quite strongly" after the lockdown is lifted, NITI Aayog Vice Chair Rajiv Kumar said. "Apr-Jun quarter will be impacted significantly, negatively, because you lost a whole month of economic activity," Kumar said.
However, there will not be any negative impact on the agriculture sector as it was certified as an essential service until two weeks ago, he said. On Barclays Bank cutting India's GDP growth forecast for 2020-21 (AprMar) to almost 0%, Kumar said, it was brave of some forecasters to make such projections.
"I think they will be wrong...I see India's economic activity picking up quite strongly after the lockdown is lifted," he said, adding that it was premature to assess the impact as it depends on the severity and spread of the coronavirus.
Kumar also expressed hope that industries, especially those from the services sector, which have not yet been allowed to function, will get some relief from an economic package, which is in the making.
"Services sector will continue to experience complete revenue loss during the period of the lockdown. For these industries, I am hoping, the stimulus package, which is in the making, will provide some relief in terms of sharing their fixed cost," he said.
