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India has begun work on a continuity plan to kick-start exports once the country emerges from the shadows of the Covid-19 pandemic. The plan includes cutting down import dependence, especially from China, by focusing aggressively on substitution while improving safety compliance and quality goods to gain global market share. The commerce and industry ministry is contemplating on setting up groups to draw up strategies for sectors where China has vacated space and countries are looking to diversify suppliers.
Current Indian Economy:
The economy will suffer in FY 2020, which started in April, due to containment measures and weaker external demand and growth projection for India to 1.9% from 5.8% projected in January, holding that the ‘Extension of Lockdown’ to combat the covid-19 outbreak will throw the world economy into the worst recession since the great Depression in 1930s. More positively, however, fiscal stimulus should cushion the economic blow, as should the supply of funds be expanded and easily accessible to Industries and entrepreneur to encourage economic growth (Loose Monetary Policy).
India’s Manufacturing PMI fell to 27.4 in April 2020 from 51.8 in the previous month and far below market consensus of 42 and India’s Services PMI fall to 5.4 in April 2020 from 49.3, and far below market expectations of 40.0. The latest reading pointed to the second straight month of contraction in the sector, due to the impact COVID-19 pandemic, amid restrictions on the movement of citizens and business shutdowns.But, In the second quarter, Indian economy and import export businesses could pick up as industries restart their operations with the streamlining of supply chains.
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