As a result of the COVID-19 crisis, the share market is facing a period of uncertainty which is likely to reduce by the end of the current Fiscal Year, said Chief Economic Advisor, KV Subramanian on Wednesday.
"The share market witnesses episode of ups and downs when there is uncertainty in the economy, but I believe this episode would come down by April 15," KV Subramanian told ANI.
Speaking of the impact of Coronavirus pandemic on the country, the Chief Economic Advisor said that the first positive case of the virus was reported on January 22 in India, and after a month, the number of cases has risen to 145, which, when compared to other countries, the number is far less.
Subramanian said that the disease has risen exponentially in the rest of the world, but the preventive measures taken in India has greatly helped in containing its vast spread.
"Fortunately, community spread has not taken place. The credit goes to India's preventive measures," he said.
When asked about the stock markets functioning smoothly even amid Coronavirus scare, Subramanian said that the stock market deals with electronic trading and therefore does not involve physical contact. "As the 'work from home' method has been applied to limit social distancing, it does not apply to stock markets," he said.
Subramanian said that while the country is facing an economic slowdown, especially after the COVID-19 crisis, it may witness a rebound after the end of the current fiscal year. He said, the country will face trouble in the month of March and April but it should be reduced by the end of FY20.
"If the crisis is settled by the end of April, then FY21 may not be affected so much, as there can be a rebound in the months following April. However, the economy will remain affected, as it is affecting the rest of the world. I cannot assure figures but it will witness a reduction for sure," Chief Economic Advisor said.
Subramanian added that the global value chain should diversify its trade at this moment, as it can open a trade opportunity for India. Although, the country can only focus on such opportunities after the end of this fiscal year.