US brokerage company Goldman Sachs believes that the Indian economy will decline by five percent during the current financial year. At the same time, Moody’s Investors also feel that the negative impact of Kovid-19 will not be completely eliminated by the economic package.
- The government had announced a total economic package of 20 lakh crores
- Agencies are forecasting a slowdown in the Indian economy
In order to give a boost to the country’s economy, the government had announced a total economic package of 20 lakh crores. Finance Minister Nirmala Sitharaman gave information about this economic relief package by holding a 5-day press conference.
However, Moody’s Investors Service, the world’s leading rating agency, feels that the negative impact of Kovid-19 will not be completely eliminated by this economic package. At the same time, American brokerage company Goldman Sachs believes that the Indian economy will decline by five percent during the current financial year. This will be India’s worst performance of a year.
What did Moody’s say?
Moody’s Investors Service said that the recently announced economic package of Rs 20 lakh by the government will reduce the risk of assets for financial institutions, but the negative impact of Kovid-19 will not be completely eliminated. Moody’s said, “Government measures will help reduce the risk of assets to the financial sector, but they will not be able to completely overcome the negative effects of the corona virus epidemic.”
Regarding the MSME package, the rating agency said that the area was under stress even before the outbreak of Corona virus and cash woes would increase as economic growth slowed. At the same time, in the comments regarding the measures of non-banking companies, Moody’s said that this help is much less than the immediate needs of these companies.
Economy will decline by 5%
According to US brokerage company Goldman Sachs, India’s performance on the economic front will be the worst in any one year. India’s gross domestic product (GDP) may fall by 45 percent in the first quarter (April-June) compared to the fourth quarter (January-March) quarter of the previous financial year. This situation has arisen due to continuous shutdown of economic activities due to lockdown.
Goldman Sachs says that GDP will improve when it starts functioning. Goldman Sachs had earlier predicted a 0.4 percent decline, which was later increased to five percent. Japanese brokerage company Nomura has forecast a decline of this range.
What did Fitch Solutions say?
Similarly, rating agency Fitch Solutions said that the Rs 20.97 lakh crore economic stimulus package announced by the government to overcome the Kovid-19 crisis is not able to meet the immediate concerns. According to Fitch Solutions, the actual fiscal stimulus given under the package is only one percent of GDP, while it has been claimed that it is 10 percent of GDP. Let me tell you that many agencies are forecasting a decline in the Indian economy. Even after the Prime Minister has given a package of 20 lakh crore rupees, he is likely to fall.