Centre Working On Stimulus Package For Worst Affected During Second Covid Wave: Report

Since the discussion is at its early stages no timeline has been announced for the package, the report added. 

New Delhi: The Government is preparing a stimulus package for those who were worst hit by the second wave of Covid-19. Unlike the first wave in 2020, the cases surged rapidly and the measures were more locally taken. 

The Centre had put it upon the states government to decide the measure they want for thier state based on the requirement they felt was necessary. 

According to the Bloomberg article, the finance ministry is working on proposals to boost tourism, aviation and hospitality industries but along with small-to-medium enterprises, the news agency said.

Since the discussion is at its early stages no timeline has been announced for the package, the report added. 

There are some discussions within the government about the need, shape and timing of a fresh fiscal stimulus package. The idea is to see that the poor and small businesses do not suffer and their livelihood support is not disturbed, an official source told IANS on condition of anonymity late last month. 

After last year's lockdowns, which resulted in the country's GDP contracting by (-) 23.9 per cent, it was hoped that the economy will grow handsomely in FY22 to register a double digit growth. For this to happen, the RBI has projected a Q1 FY22 GDP growth of 26.2 per cent an IANS report stated.

The "storm-like spread" of the pandemic will have an impact on the anticipated double digit GDP growth trajectory in FY22, PHD Chamber of Commerce and Industry has said in its latest research report. Last week, Sanjay Aggarwal, President, PHD Chamber of Commerce and Industry had highlighted that a substantial stimulus would be required to create effective strides for futuristic economic growth trajectory amid the pandemic. 

“The second wave of pandemic COVID-19 is spreading faster than the first wave and affecting almost every household in India. The industry body has recommended a substantial stimulus package to support the economy, trade, and industry in this extremely difficult time," the chamber said in a statement.

According to the PHD report, out of the 10 economic and business indicators of QET (Quick Economic Trends), only six have performed positive in April 2021 -- GST collections, e-way bills, railway freight, exports, forex reserves, and manufacturing PMI.

Last year, the government and the RBI came up with a series of announcements to provide relief to the common man and businesses impacted by the Covid-induced lockdown. Under its 'Aatmanirbhar Bharat' package and the Garib Kalyan Yojana, the government had announced packages worth over Rs 20 lakh crore.