Coronavirus Outbreak: RBI governor Shaktikanta Das to address press conference at 10 AM today

A day after Finance Minister announced a  Rs 1.7 lakh crore relief package for the poor due to the economic hardships faced by the poor in the backdrop of the coronavius pandemic, the Reserve Bank of India (RBI) Governor Shaktikanta will address the media at 10 AM.

Prime Minister Narendra Modi announced a complete lockdown across the country for 21 days from 25 March midnight, asserting that social distancing is the only way out for the country in its decisive battle against the coronavirus.

On 26 March, the government announced a Rs 1.7 lakh crore stimulus that included free foodgrain and cooking gas to poor for three months, and cash doles to women and poor senior citizens as it looked to ease the economic impact of the nationwide lockdown.

Coronavirus will impact India''s economic growth "severely", as the COVID-19 lockdown is causing significant disruption across multiple sectors, including manufacturing, oil, financial, among others, said reports.

According to Dun & Bradstreet's latest Economy Forecast, the probability of countries entering into recession and companies going bankrupt has increased and India is not likely to "remain decoupled" from the global meltdown.

"As lockdowns are imposed in other global manufacturing hubs, besides China, the extent of impairment to global supply chain and global growth is likely to increase," said Arun Singh, Chief Economist Dun & Bradstreet India.

On India''s economic growth, Singh said, "given the 21-day lockdown in India, India''s GDP growth is expected to moderate further from our earlier estimate of 5 per cent for FY20. And growth for FY21 remained highly uncertain."

As per the report, lockdowns and restrictions on commercial activities and people gatherings are likely to strongly impact global and domestic growth from March 2020 onwards.

Dun & Bradstreet expects the Index of Industrial Production (IIP) to remain subdued by 4-4.5 per cent during February 2020.

The coronavirus-related worries are likely to aggravate difficulties for Indian banks, ratings agency Fitch said on 26 March, revising down the operating environment score for the critical sector by a notch.

The score has been revised to “BB” from “BB+” earlier, the agency said, pointing out that COVID-19 outbreak ups the worries for the sector, which is already reeling under weak business and consumer confidence.

The lockdown will impact industrial production and domestic demand, it said, adding this will exacerbate the economic slowdown of the past few quarters that was partly caused by weaker credit availability from non-bank lenders from September 2018.

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Updated Date: Mar 27, 2020 08:51:28 IST