Goldman Sachs expects India's gross domestic product (GDP) to decline by a massive 45 per cent in the June quarter. The small and medium enterprises (SMEs) have opened factories with 30-50% capacity but are grappling with issues such as shortage of labour and limited raw material. Sensex and Nifty closed sharply lower as investors fretted over the news of the extension of the nationwide lockdown till May 31. Read for more top stories from the world of business and economy:
The deeper trough in Q2 (June quarter) forecasts reflects extremely poor economic data received so far for March and April, and the continued stringent lockdown measures, says Goldman Sachs.
CII poll finds governments owe 450 MSMEs Rs 1709 crore; 32% for the past 2 years.
The government last week announced a slew of measures including Rs 3 lakh crore collateral free loans, but most MSMEs say this will not help much given that they need immediate cash support.
With country recording a rise in Covid-19 cases each day, worsening of the economic outlook for current fiscal has also kept investors sentiments cautious. Foreign fund outflows also weighed on the currency and equity market today.
Taking a swipe at the finance ministry, Abhijit Sen says that an idea like this can come from the finance ministry because they (people in the finance ministry) don't have an idea what happens on the ground, they only look at spreadsheet.