Lockdown

Moody’s said that a faster rate of Covid vaccination would create a positive effect on the country’s economy and would minimise the restriction on GDP flow. But the second wave of Covid slumped the economy which will result in slower growth than previously estimated, it added.

The primary reason for this moderate impact has been absence of a national lockdown this year as compared to a harsh lockdown in March 2020 which forced several businesses to shut down. This year however, states have taken a more relaxed approach towards lockdowns keeping the economy in mind.

Though the sales picked up in the second half of 2020-21 in most parts, the States which imposed high Corona cess and other taxes after the first wave of Covid-19 showed poor recovery. The total sales of IMFL products in 2020-21 was 305 million cases (9 litres each) which is nearly 12 per cent below the previous year

They also said the central government should waive off the bank interest so that the units which are recovering from last year's lockdown can now stablise. "With the learnings from last year's lockdown, all industrial units are following the Covid-19 safety protocols."

The auto major also said it remains vigilant about the evolving Covid situation and has scaled up efforts to enhance the well-being of its personnel and their supporting ecosystem. "The lockdown enforced in various parts of the country is expected to impact vehicle demand temporarily. Hence, the company has set in motion a comprehensive 'Business Agility Plan' to protect and serve the interests of its customers, dealers and suppliers.

Among the most interesting trends that emerged is the fact that the OTT segment witnessed an incredible 144 per cent increase in the number of transactions with theatres and offline entertainment avenues remaining shut, and a 139 per cent increase in expenditure between 2019 and 2020.

This spooked investors and led the S&P BSE Sensex and NSE Nifty50 to crash by around 3.5 per cent each.Notably, majority of sectors ended in deep red with massive selling being witnessed in PSU banks, followed by media, realty, private banks, financials, metals, auto, infra and energy.

Assuring full cooperation of the business community of India to both Central and state governments in their efforts against the coronavirus spread, it said that on one side, effective steps are needed to stop increase in Covid cases, and on the other, economic and commercial activities should also continue by observing safety protocols in a strict manner.