The Advisory Council to the 15th Finance Commission during its two-day meeting felt that the impact of COVID-19 lockdown will lead to a slowdown in the Indian economy. According to the reports, the Council revealed that the domestic activity will witness a slowdown. Along with it, it will also have an impact on cash flows of financial institutions and business enterprises.
The Advisory Council to the 15th Finance Commission held a two-meeting on April 23 and April 24 that was chaired by NK Singh, Chairman of the 15th Finance Commission. The meeting was attended by all members and senior officials of the Commission. Further, Dr Sajjid Z Chinoy, Dr Prachi Mishra, Neelkanth Mishra and Dr Omkar Goswami joined the meeting on April 23, while Dr Arvind Virmani, Dr Indira Rajaraman, Dr DK Srivastava, Dr M Govinda Rao, Dr Sudipto Mundle and Dr Krishnamurthy Subramanian joined the meeting on April 24.
According to reports, the Advisory Council during its meeting felt that once the lockdown is lifted, the recovery of the economy is expected to be gradual, depending on the ability of the workforce to get back to work, restoration of supplies of intermediates and cash flows and the demand for output. Along with it, it stated that the magnitude of the impact is uncertain, however, it will be significant. Further, according to the Council members, the shortfall in tax and other revenues will be largely due to subdued economic activity.
Prime Minister Narendra Modi on April 14 announced the extension of the nationwide lockdown till May 3 in order to contain the spread of the deadly Coronavirus. He addressed the nation as the ongoing pan-India lockdown entered its 21st day.
All transport services have been stopped, including Indian railways' passenger service goods trains are operational to ensure a steady supply of goods and services across the country. India has suspended all visas and barred travel from Afghanistan, Philippines, EU, UK, China, Malaysia and mandatory 14-day quarantine from several other countries.
(With ANI Inputs)