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Coronavirus impact: GDP likely to grow at 1 to 2% in first quarter of FY21, says CEA Subramanian

Subramanian said it was the time for Indian industries to revamp strategies and adopt modern technologies to compete on a global scale

twitter-logoBusinessToday.In | May 4, 2020 | Updated 19:44 IST
Coronavirus impact: GDP likely to grow at 1 to 2% in first quarter of FY21, says CEA Subramanian
India is under lockdown since March 25

The GDP growth in the first quarter of FY21 is expected to range between 1 per cent and 2 per cent due to ongoing coronavirus lockdown, Chief Economic Advisor KV Subramanian said. However, the economy is likely to rebound in the second quarter as industries resume their operations and migrant workers get back to their jobs, Subramanian told news agency ANI. He added that the Indian exports are bound to see a hit amid weak global economic scenario.

Subramanian said it was the time for Indian industries to revamp strategies and adopt modern technologies to compete on a global scale as various multinational corporations planned to move out of China. On India Inc asking for a fiscal stimulus, Subramanian said that India has to take into account its ground realities before committing to such demand rather than following models of Britain or the US.

In March, India outlined a Rs 1.7 lakh crore economic stimulus plan providing direct cash transfers and food security measures to give relief to millions of poor hit by coronavirus lockdown. According to global news agency Reuters, India may soon announce a second stimulus package of nearly Rs 1 lakh crore and focus on help for small and medium businesses weathering the coronavirus outbreak. Prime Minister Narendra Modi on Saturday reportedly held important meetings with key ministers, including Home Minister Amit Shah and Finance Minister Nirmala Sitharaman, and top government officials to discuss a second stimulus package for sectors hit by coronavirus lockdown.

Meanwhile, India's coronavirus tally has touched 42,836, including 29,685 active cases, 1,389 death.

Also read: Coronavirus Live Updates: Total cases surge to 42,533, 1,074 people cured in 24 hours, says govt

Also read: Congress offers to sponsor lakhs of stranded migrant labourers' train tickets

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