India's supply chain has been massively disrupted due to the ongoing coronavirus lockdown, Niti Aayog CEO Amitabh Kant said. The coronavirus pandemic has resulted in a unique challenge, which is complex and unpredictable, Amitabh Kant said at a virtual session on 'COVID-19 & The Future of Work'.
"We are passing through a very turbulent time. Our supply chain will get massively disrupted," Amitabh Kant added. India is currently under a nationwide lockdown until May 3 to fight against the life-threatening coronavirus. Also participating in the session, World Bank Country Director (India) Junaid Kamal Ahmad said that it is important that governments in developing countries change the way they work.
Talking about the pace of change the world is undergoing, Kant gave the example of climate change. He said climate change has changed the global economy and that change has always been there. "What the virus, COVID-19, has done, is that it has created another shock and continued to put us on the path of change. For me, it is the acceleration of that change. So, no, we don't go back to the world as it was, we go forward in terms of continuing to adapt to new realities. I see a very different type of social protection system, I see a different type of health system, I see very different type of informal economy, which becomes the new normal -- informal becomes the new normal. I see fundamental shifts in the way we work, but see these as parts of the changes that have been happening," he said.
Meanwhile, India's GDP growth may fall to 1.1 per cent in FY21 owing to coronavirus crisis, the SBI Ecowrap report said. The nominal GDP for FY21 could be around 4.2 per cent as there is a possibility of subsidies outstripping tax collection. Similarly, the rate of growth in FY20 is expected to fall to 4.1 per cent from 5 per cent estimated by several agencies before the coronavirus outbreak, the SBI report said. "We are building in a downward revision in FY20 GDP growth from 5 per cent to 4.1 per cent that results in gain of 1.1 per cent for FY21, which is exactly our estimate for FY21. Thus, if FY20 GDP is not revised down to 4.1 per cent then growth for FY21 could be even lower than 1.1 per cent," it added.
Additionally, the MHA stated on Sunday that non-essential delivery by e-commerce sites would remain prohibited. This clarification came as e-commerce platforms were gearing up to accelerate delivery of all goods, following the earlier guidelines by MHA that did not exclude delivery of non-essential items.
INDIA CORONAVIRUS TRACKER: BusinessToday.In brings you a daily tracker as coronavirus cases continue to spread. Here is the state-wise data on total cases, fatalities and recoveries in one comprehensive graphic.