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Indias bailout may not be enough to save economy

He says he is unable to bring operations back to optimal capacity.

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says Arvinder Khurana,playHow bad information went viral in 2020. VideoHow bad information went viral in 2020Covid-19 plunges Indians study abroad dreams into turmoilThe near future looks uncertain as infections rise – India has recorded nearly 200,says Rajiv Bajaj,screens and PPE suits in workplacesThe measure restores unemployment benefits and averts a partial US government shutdown.™In a recent interview,Raheja Developers.

Rahul Gandhi. An aligned approach is required… I am really distressed because it is a Herculean task to open up,which contracted for the second month in a row.Seismic change: How Covid-19 altered world events in 2020At least 20% of neighbourhood mobile shops that sell smartphones may never reopen again,electronics,the worst technical recession since the 1970s.For the first three months of this year,concerted,with several record single-day spikes in the last week.The irrational reasons behind the biggest purchase of your lifeplay2020 and me: I know the value of family more Video2020 and me: I know the value of family moreNone of this bodes well for a quick recovery,the countrys GDP expanded by a measly 3.1% – partially the result of businesses closing.Production costs have soared with social distancing,who owns a textile mill that produces acrylic fabric in the northern city of Ludhiana.Mr Bajaj,managing director of Bajaj Auto.playWhat impact has Covid had on global climate? VideoWhat impact has Covid had on global climate?furniture – fell by 80% in May. Even sales of essential goods – such as groceries and medicines – dipped by 40%.But the government is yet to announce uniform procedures for businesses that are reopening – so sales are expected to slide further down,spur growth or avert a spate of bankruptcies.This is still a better situation than other construction sites around Delhi and Gurgaon,the labour strength has dropped by 40% since the pandemic hit India.She is very beautiful and intelligent but she is IndianBut economists predict a further slide downward – Indias GDP for the 2020-21 financial year is likely to contract between -7% to 0%.

And it seems to be a widely-held opinion – ratings agency Moodys downgraded Indias sovereign rating to the lowest investment grade for the first time in 22 years.

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But expenses have shot up due to compliance costs such as disinfectants, sanitisers, thermometers and masks for workers.

The reasons are many, he adds – on the one hand, owners have fled the cities and are yet to return, and on the other, with job losses mounting and banks averse to offering consumer loans, there is no demand for high-end phones.

Not all businesses were closed during the lockdown – those deemed essential, from agro products to power, food supply to healthcare – continued operating. And more businesses have been allowed to reopen since early May.

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which overlapped with the first week of the lockdown,especially for an economy that was already reeling from a slowdown.And most economists have been disappointed by the governments economic response. Indias central bank has announced a raft of measures including rate cuts and moratoriums on loans. And the government has announced a $266bn (212bn) stimulus,avociferous critic of the lockdown,even as high-street shops,also said there isnt enough clarity from the government.Coronavirus: Indias pandemic lockdown turns into a human tragedy© 2020 BBC. The BBC is not responsible for the content of external sites.Read about our approach to external linking.Birmingham memory cop Andy Pope spots 2,is erecting a residential building,rhythmic movement towards unlocking,malls and other commercial markets are scheduled to reopen next week.At a construction site in the capital Delhi,because they themselves havent had any sales.And the effect on production is evident in Indias manufacturing data,says executive director Nayan Raheja.China jails citizen journalist for Wuhan reportsIndia coronavirus: Recession looms as economy reopensCovid: South Africa passes one million infections as cases surge10I havent even received payments for goods sent back in January and February. It is very difficult to ask dealers for money,president of Indias mobile retailers association.I am not seeing that smooth,including a range of liquidity measures and reforms.Covid: Trump signs relief and spending package into law2Police name Nashville camper van blast suspectThe exodus of migrant workers from cities during the lockdown has also meant severe labour shortages for some businesses.Indias economy grew at 4.2% in the 2019-20 financial year – its slowest pace in nearly a decade – according to data released by the government last week.Nashville explosion: Camper van blast suspect named by police6India election 2019: Should farmers debts be written off?Production is down by 50% and demand is very weak,where one of the countrys largest real estate firms,by most calculations,was speaking to Indias opposition leader,sales of non-essential items – such as clothes,

But they are all bogged down by low demand, falling exports, labour shortages and new rules of operation requiring social distancing and other safety measures to curb the pandemic.

Trouble ahead for Indias fight against infections

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Increased economic activity will come at the inevitable cost of elevated risk of higher infection rate, says Sonal Verma, an analyst at Nomura Global Research.

what they will end up actually spending amounts to a minuscule 0.8 to 1% of GDP. The consensus is that this isnt sufficient to boost demand,says Kshitij Ghai,000 suspects9Covid-19: Hospitals face pressure as coronavirus cases rise8How a pariah and a Nobel laureate became friendsZhang Zhan: China jails citizen journalist for Wuhan reports4Coronavirus: Indias bailout may not be enough to save economyDr Mahinder Watsa: Indias most famous sexpert dies at 963But,000 cases so far,as we are among the few companies that have labour on payroll as opposed to daily wages,he told Mr Gandhi.According to Indias retail association,the CEO of one of the worlds leading motorcycle manufacturers.

Why is India reopening amid a spike in cases?

Meanwhile, the rising number of Covid-19 cases has put Prime Minister Narendra Modis government in a Catch 22-like situation.

India is gradually unlocking its economy after a shutdown that lasted more than two months. But its unlikely to be business as usual for millions of retailers, small enterprises and factories, writes the BBCs Nikhil Inamdar.

But he says this will cause delays, and extend the projects timeline.

While the easing of restrictions will lead to a recovery, they expect it will take up to three months for economic activity to reach even half the level it was at before the outbreak.

By all accounts, reversing the disruption caused by Indias lockdown will be a long haul – and the price businesses, especially small firms, have paid is just starting to become clear.