The industry is slowly getting exempted from the lockdown and some industrial activities in the country seem to be trying to get back on track. But the way Covid-19 has taken the whole world in its stride is confirming that there is no V-turn recovery (rapid improvement) in the Indian economy. Reports coming from the domestic corporate sector as well as domestic and foreign economic research agencies are pointing towards slow recovery, multiplication of new economic package within the government are also of this reality.
The meetings have been going on for the last several days on giving a package to meet the current economic challenges at a high level within the government. It was told a fortnight ago that it is going to be announced soon but the government is yet to finalize it. The reason behind this is being told that given how the situation remains unstable, the government wants to consult more parties on all the data and options.
According to an official associated with these meetings, just as the situation is not clear about the domestic market, in the same way, the situation in India's large export markets like America, European Union, Gulf countries is also not stable. A new estimate report of the Finance Ministry is also awaited on the state of revenue collection of the country. The path of improvement in the economy will certainly belong.
According to the CII research report, it will take 12 months for the economy to reach the pre-COVID-19 position while it will take more than 12 months to reach the pre-export position. The KPMG report states that India's economic recovery will not only determine whether the government here has managed to overcome the Covid-19 but will also determine what its position is in other countries. Industries like textiles, mining, automobiles, and pharmaceuticals will be able to normalize only when global conditions are also normal. Given the current state of North America, South America, European markets, it would be difficult to anticipate anything.
Similarly, a new report by Ernst & Young states that despite the announcement of various incentives from RBI, the situation does not appear to be normal for the Indian banking and financial sector shortly. Banks have an amount of Rs 7-8 lakh crore but they are short of borrowers. There will be a demand for loans from small and medium industries, but it will not be much. In such a situation, the pace of recovery will be slow.