Corona’s third wave is affecting the economy, traders demand relief package from Finance Minister
New Delhi:
The shadow of the third wave of Coronavirus is deepening on the tourism, hotel, hospitality and aviation sectors as well as the business of small traders. in the year 2021-2022 Economy Has had to deal with two waves of Corona. Now the industry and traders have demanded a stimulus package from Finance Minister Nirmala Sitharaman to give relief to the affected sectors in this year’s budget. During the third wave of Corona, the process of improving the economy is slowing down again due to restrictions on business in the affected states including Delhi.
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International organization Oxford Economics in its latest assessment report on the Indian economy has reduced India’s estimated GDP growth rate for the first quarter of 2022-23 due to the third wave of corona. The increase in corona cases in India has been cited as the biggest reason for this. However, according to the assessment of Oxford Economics, the economic loss from the third wave will be less than the first two waves of Corona.
It is being told that the biggest impact of this is on small traders. In view of the third wave that came before the presentation of the budget, business organizations have demanded a relief package from the Finance Minister in the budget. Praveen Khandelwal, general secretary of CAIT, told NDTV, “In Delhi and other states, business business has been affected by 60% due to the imposition of border restrictions on business. Announce a support package for
The country’s economic growth rate is estimated to be 9.2% in 2021-22, may exceed the level of pre-Kovid
Significantly, in the current financial year, the industry had to deal with the second and third wave of Corona. FICCI and CII have made suggestions in this budget in the pre-budget memorandum submitted to the Finance Minister. According to those suggestions, the pace of vaccination will have to be accelerated to bring the weakened economy back on track quickly. In the next five years, 3% of GDP should be spent on health infrastructure. Apart from this, to deal with unemployment in urban areas, the poor should get work under MGNREGA and MSMEs should be given more credit, the tax system should be improved.
Ved Jain, chairman of the National Committee on Direct Taxes of the industry association ASSOCHAM, said that work will not be done without giving a relief package to the areas which have been affected in the third wave of Corona. Ved Jain told NDTV, “The impact of the Corona wave on the aviation, tourism and hotel industry will affect the demand in the economy. For this reason, in the Budget 2022, the Finance Minister announced a stimulus package for all the affected sectors. They will have to do as they did in 2020 during the first wave of Corona”.
Obviously, the demand of the industry is that first of all it is necessary to provide more credit to the stressed sectors on easy terms so that they can bring their business back on track. The industry fears that if the effect of the third wave of Corona lasts for a long time, then it will affect the pace of the entire economy and the Finance Minister should announce a relief package in the budget 2022 to deal with this challenge.