A recent survey by CARE Ratings shows that a majority of industry leaders perceive lockdown to be a solution for the raging coronavirus situation across India with a sizeable number expecting it to extend only till May-end.
They also considered the current lockdown to be less stringent than last year. The optimism over India’s vaccination drive seems encouraging. A total of 305 people were interviewed between April 27 to May 11 with respondents ranging from manufacturing, financial services, non-financial services, power and others.
Almost three-fourths of respondents believe that turnover of the non-manufacturing essential segment to be the most impacted followed by non-essential services (47 per cent).
The economic recovery is beginning to lose steam with infection rates scaling record highs. Almost 7 out of 10 respondents expect the GDP to be below 9 per cent for FY22.
A majority of respondents expect moratorium by the Reserve Bank of India and emergency credit line to be extended by the government as a policy response to ease business conditions.
In addition, the release of pending dues from the government and indirect taxes also found mention.
CARE Ratings: Micro, small and medium enterprises (MSMEs) are faced with issues of labour shortages and escalating uncertainty with a large set of them expecting business performance to worsen.
Overall, said CARE Ratings, the worsening pandemic situation, localised lockdowns and the slower-than-expected pace of vaccinations have darkened prospects of a nascent economic recovery and accentuated business uncertainty.