Economic Recovery Losing Steam: CARE Ratings Survey

The economic recovery is beginning to lose steam with infection rates scaling record highs, a "CARE Ratings' Survey on Impact of ongoing lockdowns on economic prospects" says.

The survey was conducted to understand and evaluate the impact of the second wave of Covid-19 and subsequent restrictions on the economy. Almost 7/10 respondents expect GDP to be below 9% for FY22.

The Survey revealed that majority of the respondents perceived lockdown to be a solution for the raging coronavirus situation in the country with a sizeable number expecting it to extend only till May-end. However, they considered the current lockdown to be less stringent than last year.

Majority of the respondents expect moratorium by the central bank and emergency credit line to be extended by the government as a policy response to ease business conditions. In addition, release of pending dues from the government, indirect tax cuts, etc. have also found noticeable mention.

As regards MSMEs, the survey shows that they faced with issues of labour shortages and escalating business uncertainty with a large set of them expecting business performance to worsen.

The survey was conducted by interviewing 305 people and well-distributed sample which including respondents ranging from manufacturing, financial services, power, non-financial services and others.