Kerala Finance Minister Thomas Isaac on Friday shared a study by the Gulati Institute of Finance and Taxation (GIFT) on the economy of Kerala. Taking to Twitter, he shared it and stated that the study suggests that the Kerala economy will reduce by 10.13 per cent, even after normalcy is restored in the state after three months of the COVID-19 lockdown.
Further, he added that if it takes six months for recovery of the economy, the Gross State Domestic Product (GSDP) growth will decline by -13.56 per cent. According to Isaac, it will be the sharpest recession after the formation of the state in 1956.
According to a study by GIFT, Kerala economy will shrink by 10.13% even if the normalcy is restored after within 3 months of lock-down. If recovery takes 6 months, GSDP growth will decline by -13.56%. This will be the sharpest recession after the formation of the state in 1956 pic.twitter.com/oYu3pVuVoj— Thomas Isaac (@drthomasisaac) May 15, 2020
Kerala Chief Minister Pinarayi Vijayan on Friday demanded a special financial package for small-scale industries and entrepreneurs from the Centre. While briefing the media on the Coronavirus situation in his state, CM Vijayan said that the package announced by the Centre on Wednesday does not address the needs of the small-scale entrepreneurs. He also said such entrepreneurs had raised a few demands, including a one-year moratorium on existing loans and avoid interest during this period.
He further added that the state government needs the help of the Centre to write off the charges of electricity of small-scale industries, and the workers in the small-scale sector need to be given financial aid.