The corporate sector the driver of the Indian economy was trying to limp back to normal after the government address several issues like reduction in corporate taxes and dividend distribution tax but GST continued to be problematic till last report came in. Having said this the revenue was brought to utter squeeze but still the government was flexing its muscle to overcome the issues in GST as the council had understood that some flaws exist in the tax slabs also. Technical glitches are still very huge and the delay refund could not be tackled very efficiently. The government wanted to bring LIC for milking some ready cash and kept the sale of BPCL and AIR INDIA ready to garner 2.10 lacs crores. The budget size was expected to make little larger while revenue projection was already proliferated the Covid 19 may prove fatal to economy. The government with very tight fiscal space and inflation already slipped from the soft zone to aggressive zone the RBI once took pause to alter the repo after five times cut in the one year does not seem to be flushing more funds to contain the woes of huge informal sector which has already broken down and crying for help to come from sky. The government has been committing several schemes wherein revenue space was fully occupied and time had come when the unfeasible sources were brought in focus to get the revenue. Whether the market which has slumped too much can resurge and whether remittance from the workers in the Gulf would be affected is totally uncertain. The rupee took the losses immediately after market collapse has increased the worries of corporate who had been borrowing when Banks were already tight in lending. The earnings on which the corporate zoom could not be taken into granted as the demand within India and abroad would not be as linear as it is made out. The demand curve would bend even if the prices for the moment remain stable because the role of saving is called in heightened uncertainty. The disruption in supply chain rather eased the pressure on prices on elite public as the nearby accessibility has improved but the problem for 80 percent of the population who are living in unpopular pockets has become bad to worse as the disruption in payment of wages with or without work are not making them to pay and purchase. The limited supply chain and workers going off has affected the production and managing with limited consumable is the only way to survive. The contraction in demand and supply both of all the commodities theoretically keeping the price low because neither the market is flooded nor buyers have the guts to store for long time. Now the actual position of demand and supply shall be known after the lockdown is removed. Since many States are witnessing the increase in confirmed cases the immediate lifting may not be the wise situation and then students donot see any compulsion to resume studies the partial shutdown may continue for some time more the cases start falling should indicate the complete normalcy. How long the air services and tour and travel would remain suspended till the other countries lift the lock down. The losses in terms of income which measures the demand and earning of the corporate which is the metric of supply shall be the lead indicators of the interest rates, inflation and exchange rate. The foreign investor can do good to keep the market healthy for giving time to domestic investors to make their income realised but it also had significant impact on the exchange rate. Many variables are interlinked and isolated analysis is difficult. But on the whole the foot loose workers who have been relieved from their work would have tough time to bring their life on the track. There is no other way to reprieve them except without work if they can be supported by the government by way of transfer of income in their accounts would be too good but how far it is possible technically and financially the government must be exploring the ways and means. The more is stepping back or nagging the more would be the woes of the workers class whose wages are incidental and not committed. The disruption is not only huge at first shock but lingering is equally harmful and it is the latter which should be settled immediately otherwise starvation is staring stingly.
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