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Need for consumption drivers to counter imminent slowdown: PHDCCI


Imposition of partial lockdowns and curfews in many parts of the country, due to re-emergence of COVID-19 pandemic, has created incipient signs of economic slowdown in the coming months, industry chamber PHDCCI has said, as per a PTI report. It also said that the strong growth of GST collections may partly be attributed to the significant acceleration in input costs vis-a-vis increase in commodity prices.

It added that the second wave of COVID-19 has struck like a storm throughout the country and the coronavirus has entered every household and is affecting the lives of everyone.

“The re-emergence of the pandemic situation with partial lockdowns and curfews in many parts of the country has created incipient signs of economic slowdown in the coming months,” the chamber said.

Going forward, it said, there is a need to fuel the drivers of household consumption and private investments to enhance aggregate demand in the economy with calibrated and well-timed steps.

“We request an adequate stimulus to support the economy, trade, and industry in this extremely difficult time,” it said in a statement.

Further, on the announcements of the RBI, it said the calibrated, sequenced, and “well-timed” measures announced by the central bank are highly encouraging as these measures will provide liquidity, bring down the cost of capital and mitigate the daunting impact of the second wave of pandemic COVID-19.

“These measures will support the small businesses, individual borrowers, and the healthcare system in the country,” it added.