{"id":129,"date":"2020-03-24T18:41:42","date_gmt":"2020-03-24T13:11:42","guid":{"rendered":"https:\/\/total-sols.com\/blog\/?p=129"},"modified":"2020-03-24T18:49:11","modified_gmt":"2020-03-24T13:19:11","slug":"everyone-is-wondering-over-the-impact-of-corona-virus-and-recession-on-the-indian-economy","status":"publish","type":"post","link":"https:\/\/total-sols.com\/blog\/everyone-is-wondering-over-the-impact-of-corona-virus-and-recession-on-the-indian-economy\/","title":{"rendered":"Everyone is wondering over the impact of Corona virus and recession on the Indian economy"},"content":{"rendered":"\n<p>The\nspread of Corona is affecting the world economy.&nbsp; The outputs are this decade\u2019s lowest, there\nis shortage of many products and more than the pandemic, the panic is driving\neveryone crazy. <\/p>\n\n\n\n<p>The\naffected countries are China, Italy, Iran, USA and many more others are also\nfollowing the road. &nbsp;USA has declared it\na national emergency and Italy is in complete lockdown. <\/p>\n\n\n\n<p>The\ncountry-wise details of measures taken &amp; incentives SOPS given to tackle\neconomic recession further driven by COVID-19.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Australia:\n<\/strong>Australia has\ndeclared 17.6 billion packages to be disbursed in stages till July for welfare.&nbsp; Recipients &#8211; Pensioners, Caregivers,\nVeterans, Family, Young People &amp; Job seekers will get $750. &nbsp;Tax break for small businesses. &nbsp;Tax relief for small businesses.&nbsp; One-off cash payment for welfare recipients\n&amp; money to help keep apprentices at work.7 lakhs for a medium business will\nreceive cash payment between $2000 &amp; $ 7500\/- to pay wages or higher extra\nstaff 6.7 billion package has been marked for it. &nbsp;$1.3 billion package to keep payments to\napprentices in jobs. $ 1 billion for tourism sector. Company with turnover up to\n$5000 million for maximizing investment of $30,000 extended instant right off. &nbsp;Where they can claim stax break on what they\nspent this will be allowed over a period to companies with turnover of $500\nassets, write off allowed upto $1,50,000\/-. $2.4 billion for healthcare &amp;\nfight coronavirus.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>China:<\/strong> The People Bank of China (PBOC)\non 3<sup>rd<\/sup> February, the bank expended a reverse repo operations by $\n174 billion, it added $71 billion on 4<sup>th<\/sup> February, the Chinese\nauthorities on 5<sup>th<\/sup> March allocated 110.48 billion Yuan ($ 15.93\nbillion) for coronavirus-related funding , on 13<sup>th<\/sup> March China\ncentral bank launched $79 billion stimulus to help the country\u2019s ailing\neconomy.&nbsp; The People Bank of China cut\nreserved recruitments for Banks which free $78.8 billion in funds that will aid\nthe firms affected by the COVID -19 outbreak.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>France<\/strong>: France govt has landed on\nmassive &amp; exceptional incentives to pay the workers who have lost jobs due\nto coronavirus. The president guaranteed 300 billion euros ($ 335 billion)\nworth of loans to help the business get through coronavirus crisis. It also\nannounced that it will mobilize 45 billion euros ($50.22 billion) in crisis\nmeasures to help company afloat.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Germany:\n<\/strong>On 14<sup>th<\/sup>\nMarch Germany announced to provide stimulus package upto 550 billions euros ($\n610 billion) to companies hit by coronavirus.&nbsp;\nThe Govt relaxed tax norms for German enterprises hit by pandemic, the\ncompanies are now allowed to defer billions of euros in tax pre-payment. The\nGerman govt expanding its subsidies to compensate jobless people. The state of\nBavaria which houses BMW and Siemens has launched fund of 10 billion euros\n(11.1 billion) to buy stakes in companies struggling due to outbreak.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Indonesia:<\/strong> Indonesia Govt has announced\n10.3 trillion rupiah ($ 727 million) rescue &amp; support tourism in the\ncountry. It followed 2<sup>nd<\/sup> stimulus package of 120 trillion rupiah\n($8.1 billion) to support economy amid the COVID-19 outbreak. 22.9 billion\nrupiah allocated to aid loan disbursement towards business affected by the\npandemic, further 30% corporate tax discount for 6 months.&nbsp; The Manufacturing sector with income below\n200 million rupiah could be exempted from paying Income tax for upcoming 6\nmonths, some funds from the rescue package for social welfare &amp; rural\ndevelopment &amp; to boost household expenditure.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Italy<\/strong>: Italy has recorded the highest\ndeath due to coronavirus pandemic has announced a rescue package of 25 billion\nEuros ($28 billion) on 16<sup>th<\/sup> March, this package shall include 10\nbillion euros to support employment. 3.5 billion to strengthen healthcare &amp;\nindividual cash bonus to Italians still working during the countrywide\nlockdown.&nbsp; The package includes loan\nguarantees to small &amp; medium businesses hit by the crisis. The Italian govt\nalso handed out measures for financial relief to citizens. Italian families can\nnow apply for permission to suspend the mortgage payment if business shutdown\ndue to coronavirus threaten their livelihood, additionally monthly subsidy of\n600 euros have been announced to 5 million workers including those\nself-employed &amp; seasonal workers.<\/li><li>Parents\nhave been entitled to claim 600 euros from the govt to pay babysitters amid the\nCOVID-19 Pandemic.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Japan:<\/strong> Japan announced two rescue\npackages, one for $ 4.6 billion in February &amp; $ 15 billion in March. The\nmost recent spending includes $ 4 billion for a number of programs including\nincreasing mask production &amp; stopping the virus from spreading to nursing\nhomes.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Malaysia:<\/strong> Cabinet has approved financial\nstimulus to tackle COVID. 20 billion Malaysian ringgits ($ 6.6 billion) and\nfurther announced travel agencies, hotels, airlines &amp; shopping malls will\nget 15% discount for 6 months beginning from April on electricity bills. Hotels\nexempted from service tax till august. Public transport, drivers &amp; tourist\nguide affected by COVID will get 600 Malaysian ringgit each. Doctor, medical\nstaff who are involved in containment of coronavirus will get special monthly\ncritical allowance of Malaysian ringgit 400 each from February to end of the\noutbreak. &nbsp;Immigration &amp; frontline\nworkers will receive allowance of 200 Malaysian ringgit.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>New\nZealand:<\/strong> New\nZealand has announced amount of 12.1 billion New Zealand dollars ($ 7.3\nbillion) stimulus package to fight the pandemic. Out of this amount, 5 billion\nNew Zealand dollars will be allocated for wage subsidies, 2.8 billion New\nZealand dollars for income support. 2.8 billion New Zealand dollars for\nbusiness tax relief. 600 million US dollars for Airline Industry. <\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Northern\nIreland:<\/strong>&nbsp; Northern Ireland has announced an emergency\nfinancial assistance of 100 million pounds to help business impacted by COVID\n-19. All businesses hit by virus will pay 0 taxes for next 3 months.&nbsp; Besides, govt has approved deferral of rate\nbills for the residents of Northern Ireland.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Saudi\nArabia:<\/strong> 50\nbillion riyals ($ 13.3 billion) to help private business survived corona\npandemic. Small and Medium business will also be supported by loan guarantee\nscheme of 6 billion.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>South\nKorea:<\/strong> A\nstimulus package 11.7 billion won($ 9.8 billion) is unveiled to protect the\neconomy &amp; business from COVID mayhem. Medical institutes have been\nallocated 2.3 trillion won for struggling business &amp; child care subsidy 3\ntrillion won allotted. Loan will be granted on relaxed terms. People loosing\njobs due to epidemic will be retained.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Spain:<\/strong> Spanish Govt has marked 200\nbillion euros ($ 2020 billion) to fight Coronavirus epidemic. It is the largest\nfinancial aid in the country\u2019s democratic history, out of this sanctioned 117\nbillion euros will be mobilized by the state balance will come from Private\ncompanies in Spain. The Govt also promised loan guarantee of 100 billion euros\nfor small &amp; medium sized business hit by the pandemic.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Switzerland:<\/strong> The country has pledge 10\nbillion swiss franc ($ 10.5 billion) in aid for its companies. The program\ntargets small business &amp; freelancers who have been hit, enforced lockdown\namid the coronavirus epidemic.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Thailand:<\/strong> Thailand cabinet has approved $\n17.6 billion to help alleviate the impact of Coronavirus. The package includes\n1500 billion baht of soft loans at 2% interest rate. Govt also announced to\nsetup a 20 billion baht fund to help firms or workers affected by outbreak of\ncoronavirus. Central bank urged to protect the debtors decided to offer relaxed\ndebt repayment &amp; lower interest rates for businesses suffering from\nCOVID-19. Govt shall exempt import duties on materials used for making face\nmask.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Turkey:<\/strong> A stimulus package of $ 15.5\nbillion announced in March in order to protect small business workers,\nexporters and pensioners from COVID-19 impact under the rescue package 3 months\ndeferrals of loan payment by first further financial support to the companies\naffected by virus outbreak.&nbsp; Social\nsecurity premiums will be postponed by 6 months for retail, steel industries,\nshopping malls, entertainment &amp; hospitality sector, food &amp; beverage\nbusiness, textile &amp; event organization sector.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>Turkish\ngovernment will increase the lowest pension payment to 1500 turkey lira ($231),\nfurther additional fund of 2 billion Turkish liras (3.08 billion) allocated for\nhousehold in need.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>UAE\n<\/strong>(United Arab\nEmirates): has launched fresh initiative under \u201cGhadan 21\u201d to help small &amp;\nmedium enterprises. The country has pledged $ 100 billion dirham ($ 27.2\nbillion) to fight the outbreak of coronavirus. The amount includes water and\nelectricity subsidy for citizen &amp; industries of 5 billion dirhams. The toll\ntaxes curbed till the end of 2020. 3 billion dirhams allocated to SME Credit\nGuarantee Scheme. 1 billion dirhams for market funds to enhance liquidity, also\n20% refund on rent paid by tourism &amp; entertainment sector.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>UK:&nbsp; <\/strong>UK\nhas sanctioned 330 billion pounds ($ 434 billion) to fight the coronavirus\npandemic, out of which 12 billion pounds for the national health services. The\ngovt also has given loan guarantee to businesses created by coronavirus\npandemic.&nbsp; In addition, it has announced\n20 billion pounds of tax cuts, 3 months mortgage payment holiday for borrowers\naffected by COVID-19. &nbsp;Govt also waived\nof tax on non-domestic property for this financial year &amp; insurers has been\nasked to payout the firms covered for pandemic. The Bank of England said it\nwould setup new lending facilities for effected businesses. <\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>USA:<\/strong> Trump administration of US, on\nMarch 6<sup>th<\/sup> 2020 US president signed a spending bill of $8.3 billion\nto fight the pandemic on 13<sup>th<\/sup> March, the USA government announced\nstate of emergency allowing the federal government to distribute upto $ 50\nbillion in financial aid to states, cities &amp; territories on 17<sup>th<\/sup>&nbsp; March US has backend a plan to send cheques\ndirectly to Americans as a part of $ 1 trillion stimulus package &#8211; a dramatic\nstep designed to cushion the impact of economic slowdown triggered by\ncoronavirus. This package is to help the businessman &amp; households.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>India\n:<\/strong> &nbsp;The economic slowdown added with COVID impacted\nsome of the sectors like tourism to completely shutdown and other manufacturing\nunits, MSME on the verge of dying, however they are dealing with COVID\nstringently.&nbsp; The Indian Govt has not\ngiven any stimulus incentives either to job losers nor to dying MSME, added to\nthis some of the banks are closing down in the cooperative and private sector\nhave increased the troubles of MSME and street business people. &nbsp;The stock markets are falling down, the dollar\nrates increasing, exports and imports completely stopped but only some measures\nby way of tax package announced by Govt of India. further the announcements are\ncoming today only on the following:<\/li><li>GST\nReturn filing has been extended for March, April , May to 30<sup>th<\/sup> June\n2020 with application of staggering date<\/li><li>Taxpayers\nturnover exceeding 5 crore interest at 9% without late fee<\/li><li>Taxpayers\nbelow 5 crores turnover, no late fee, no interest, no penalty, date for opting\ncomposition scheme extended to 30<sup>th<\/sup> June 2020.<\/li><li>Further\nthe govt is still buying the options of extending compliance deadline for\nincome tax return &amp; annual returns of ROC.<\/li><\/ul>\n\n\n\n<p>Till\ndate Indian Govt has not announced any stimulus package for companies or\nbusinesses, only advisory committee under FMO has been setup.<\/p>\n\n\n\n<p>The\ntrade business is worried as the entire business is getting shutdown &amp; they\nare not in a position to pay wages with mounting pressure of EMI, Taxes &amp;\nInterests on their loans. This situation in India is prevailing much before\nCOVID-19. say more than 3 months. The economic slowdown had already made MSME\nslowdown &amp; close down &amp; now COVID is making all sectors to die. The\nrelief given so far in the form of Tax sops are long term in nature and does\nnot help the present crisis that MSMEs are in, need to address the present\nneeds.<\/p>\n\n\n\n<p><strong>HENCE WE NEED A REAL-TIME STIMULUS PACKAGE WHICH WILL BE THE MUCH\nNEEDED OXYGEN TO INDIAN BUSINESS.<\/strong><strong><\/strong><\/p>\n\n\n\n<p><strong>1. A STIMULUS PACKAGE OF ATLEAST 5-25 LAKHS AS A PRE-RELIEF MEASURE\nTO MSME<\/strong><strong><\/strong><\/p>\n\n\n\n<p><strong>2.&nbsp;Deferment\nof GST for One Year, Post One Year revive the situation, Grant EMI&nbsp;&nbsp;<\/strong><strong><\/strong><\/p>\n\n\n\n<p><strong>3. INCOME TAX HOLIDAY FOR A PERIOD OF ONE YEAR FOR MSME LESS THAN 5\n&nbsp;&nbsp;CRORES TURNOVER.<\/strong><strong><\/strong><\/p>\n\n\n\n<p><strong>4. INVESTMENTS ON FIXED ASSETS AS 100% DEPRECIATION AS INCOME TAX\nRELIEF FOR MSME, AT LEAST FOR 1 YEAR.<\/strong><strong><\/strong><\/p>\n\n\n\n<p><strong>5. 50% OF THE SALARY REIMBURSEMENT FOR A PERIOD OF ONE YEAR AS\nSTIMULUS PACKAGE TO MANUFACTURING AND SERVICE SECTOR, MSME UPTO A TURNOVER OF 3\nCRORES<\/strong><strong><\/strong><\/p>\n\n\n\n<p><strong>6. EMPLOYER-EMPLOYEE CONTRIBUTION FOR PF, ESI WAIVED OFF FOR A\nPERIOD OF 1 YEAR<\/strong><strong><\/strong><\/p>\n\n\n\n<p><strong>7. RELAXED NORMS FOR ADDITIONAL LOANS WITH SECURITY BY GOVT\nGUARANTEE SCHEME UPTO 2 CR FOR MSME WITH TURNOVER OF 10 CR INTEREST NOT TO\nEXCEED 4%<\/strong><strong><\/strong><\/p>\n\n\n\n<p><strong>8. RELEASE\nGOVT. AGENCY PAYMENTS WITHIN 15 DAYS<\/strong><strong><\/strong><\/p>\n\n\n\n<p><strong>9. MORE\nINFRASTRUCTURE PROJECTS, CREATE OPPORTUNITIES<\/strong><strong><\/strong><\/p>\n\n\n\n<p><strong>10. NO\nSCRUTINY, NO HARASSMENT FOR ONE YEAR.<\/strong><strong><\/strong><\/p>\n\n\n\n<p><strong>SAFE\nGUARDING LIVES OF PENSIONERS, DAILY WORKERS, JOB LOSERS<\/strong><strong><\/strong><\/p>\n\n\n\n<p><strong>WE PRAY THE HONOURABLE GOVT OF INDIA WHICH IS DOING IT\u2019S BEST IN\nTHESE TOUGH TIMES, BUT THE 10-POINT STIMULUS REQUESTED ABOVE IS THE NEED OF THE\nHOUR, OXYGEN TO SURVIVE.&nbsp; IT MAKE TAKE\n2-3 YEARS FOR MSME TO BOUNCE BACK BUT STIMULUS IS REQUESTED FOR A PERIOD OF ONE\nYEAR ONLY. MSME IS THE BACKBONE OF INDIAN ECONOMY.&nbsp; VARIOUS SERVICE SECTORS WILL GIVE BACK 10\nTIMES THE STIMULUS IF THEY SURVIVE TODAY. MSME\u2019s ARE REQUESTING IMMEDIATE\nSTIMULUS WITH FOLDED HANDS.<\/strong><strong><\/strong><\/p>\n\n\n\n<p><strong>DEAR ALL, IF YOU LIKE OR DON\u2019T LIKE PLEASE LEAVE YOUR COMMENT AND\nSUGGESTIONS.<\/strong><strong><\/strong><\/p>\n\n\n\n<p><strong>IF YOU LIKE, PLEASE SHARE IN ALL THE GROUPS SO THAT IT REACHES THE\nHONOURABLE PMO AND FMO.<\/strong><strong><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The spread of Corona is affecting the world economy.&nbsp; The outputs are this decade\u2019s lowest, there is shortage of many products and more than the pandemic, the panic is driving everyone crazy. The affected countries are China, Italy, Iran, USA and many more others are also following the road. &nbsp;USA has declared it a national [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-129","post","type-post","status-publish","format-standard","hentry","category-accounts"],"_links":{"self":[{"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/posts\/129","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/comments?post=129"}],"version-history":[{"count":2,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/posts\/129\/revisions"}],"predecessor-version":[{"id":132,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/posts\/129\/revisions\/132"}],"wp:attachment":[{"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/media?parent=129"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/categories?post=129"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/tags?post=129"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}