88-689: The economic impact of the COVID-19 pandemic in India has been largely disruptive. India's growth in the fourth quarter of the fiscal year 2020 went down to 3.1% according to the Ministry of Statistics . The Chief Economic Adviser to the Government of India said that this drop is mainly due to the coronavirus pandemic effect on the Indian economy. Notably, India had also been witnessing a pre-pandemic slowdown, and according to
176-640: A ₹ 10 trillion (equivalent to ₹ 12 trillion or US$ 140 billion in 2023) stimulus to overcome the contraction. India had also been witnessing a pre-pandemic slowdown. Even before the pandemic, since FY 2018–19, India's growth was falling, 8% in Q4 FY18 to 4.5% in Q2 FY20. In January 2020 itself, well before India's lockdown or reactions to the pandemic, the International Monetary Fund reduced India's GDP estimates for 2019 and also reduced
264-623: A Atmanirbhar Bharat Abhiyan ( transl. Self-reliant India Mission ). The following day the Finance Minister started laying out the details of the Prime Minister's vision which would continue into the next few days. The Finance Minister stated that the aim was to "spur growth" and "self-reliance", adding that, "self-reliant India does not mean cutting off from rest of the world". The law and IT minister, Ravi Shankar Prasad , also said that self-reliance does "not mean isolating away from
352-505: A group of businesses must use nearly the same fiscal year (differences of up to three months are permitted in some jurisdictions, such as the US and Japan), with consolidating entries to adjust for transactions between units with different fiscal years, so the same resources will not be counted more than once or not at all. In Afghanistan , from 2011 to 2021, the fiscal year began on 1 Hamal (20th or 21 March). The fiscal year aligned with
440-463: A "recalibration" is needed. Rajiv Bajaj writes that "India may have to sell itself out of the coronavirus crisis". Post the economic package, Barbara Harriss-White criticised the "shock tactics" of the Modi government during the COVID-19 pandemic, the same "shock tactics" that were seen during demonetization. Fiscal year A fiscal year (also known as a financial year , or sometimes budget year )
528-577: A 45% decrease in the total growth-stage funding ( Series A round ) as compared to Q4 2019. According to a KPMG report venture capital in Indian startups has fallen over 50% in Q1 2020 from Q4 2019. Government revenue has been severely affected with tax collection going down, and as a result the government has been trying to find ways of reducing its own costs. On 10 May 2020, Union Minister Nitin Gadkari said that some states didn't have enough money to pay salaries in
616-506: A 70%–75% "corona" extra tax on liquor. Excise duty on liquor is the third largest source of income for a number of states, nearly 10–15% of total tax collection for some states. The ban during the lockdown affected alcohol sales, in turn having a major effect on the state revenue. There were concerns as to where would the government find the funds to fight coronavirus and keep the economy alive. Experts suggested measures such as looking into NPA norms, tax payments and income support to those in
704-443: A January–December financial year, becoming the first Indian state to do so. But later it dropped the idea due to Many financial & accounting error. In Indonesia , since 2001, the fiscal year is the calendar year, 1 January to 31 December. Until 2000, the fiscal year ran from 1 April to 31 March; fiscal year 2000 ran from 1 April to 31 December. In Iran , the fiscal year usually starts on 21st or 22 March (1st of Farvardin in
792-484: A certain amount of direct cash support. The "collateral-free loans" that the package provided aimed to "resume business activity and safeguard jobs". Changes in FDI policy, privatization of the power sector, provident fund contribution and ease of doing business measures were also announced. Land reforms at the state level which were not mentioned in the economic package are also part of the overall changes. Reports though stated
880-462: A deep recession. (The ratings of over 30 countries have been downgraded during this period.) On 26 May, CRISIL announced that this will perhaps be India's worst recession since independence. State Bank of India research estimates a contraction of over 40% in the GDP in Q1. The contraction will not be uniform, rather it will differ according to various parameters such as state and sector. On 1 September 2020,
968-607: A financial year-end date. Private businesses usually choose the last day of the calender year or the last day of the quarter for their financial year end. Generally, the government releases the annual federal budget in October, ahead of the fiscal year. In Mexico , the fiscal year is the calendar year, 1 January to 31 December. In Moldova , the fiscal year is the calendar year, 1 January to 31 December. Crore A crore ( / k r ɔːr / ; abbreviated cr ) denotes ten million (10,000,000 or 10 in scientific notation ) and
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#17328554968661056-528: A fiscal year which ends during the summer to align the fiscal year with the academic year (and, in some cases involving public universities, with the state government's fiscal year) and also because the university is normally less busy during the summer months. In the Northern Hemisphere , that is July to the next June. In the Southern Hemisphere , that is the calendar year, January to December. In
1144-563: A major relook at our operational priorities and what we actually need. [...] boost 'Make in India' by hand-holding our domestic industry even if they deliver weapons with only 70% of the GSQRs (general staff qualitative requirements) in the beginning…given the opportunity, they will eventually deliver cutting-edge technology. [...] We are not expeditionary forces that have to deploy around the globe [...] we should not go in for large amounts of imports by misrepresenting our operational requirements" During
1232-541: A month, reaching 26% unemployment across India, according to the 'Centre for Monitoring Indian Economy'. Around 140,000,000 (140 million) Indians lost employment during the lockdown. More than 45% households across the nation reported an income drop as compared to the previous year. Various business such as hotels and airlines cut salaries and laid off employees. Revenue of transport companies such as Ola Cabs went down nearly 95% in March–April resulting in 1400 layoffs. It
1320-449: A much longer time for the growth in demand to be restored to pre-COVID-19 levels. Oil prices dropped sharply in 2020 following the COVID-19 pandemic. Demand also fell sharply. By mid-May India had already filled its strategic storage including storing oil on ships across the world. India is now looking at storing oil in other nations including America. India also plans to increase its local strategic storage capacity for oil. A study during
1408-463: A number of economic indicators showed signs of rebound and recovery. On 12 October and 12 November, the government announced two more economic stimulus package, bringing the total economic stimulus to ₹ 29.87 lakh crore (equivalent to ₹ 35 trillion or US$ 420 billion in 2023). By December 2021, India was back to pre-COVID-19 growth. "From the economy's point of view, the lockdown undoubtedly looks costly right now, but compared to
1496-562: A similar fashion, many nonprofit performing arts organizations will have a fiscal year which ends during the summer, so that their performance season that begins in the fall and ends in the spring will be within one fiscal year. Some media/communication-based organizations use a broadcast calendar as the basis for their fiscal year. Fiscal years' names are often shortened based on the year in which they end ; for example, "fiscal year 2023-2024" and "FY24" are synonymous. The fiscal year for individuals and entities to report and pay income taxes
1584-400: A year ending 30 June on the following dates: Victoria changed in 1870, South Australia in 1874, Queensland in 1875, Western Australia in 1892, New South Wales in 1895 and Tasmania in 1904. The Commonwealth adopted the near-ubiquitous financial year standard since its inception in 1901. The reason given for the change was for convenience, as Parliament typically sits during May and June, while it
1672-511: Is and what is not. Those in the informal sectors and daily wage groups have been at the most risk. A large number of farmers around the country who grow perishables also faced uncertainty. Major companies in India such as Larsen & Toubro , Bharat Forge , UltraTech Cement , Grasim Industries , Aditya Birla Group , BHEL and Tata Motors temporarily suspended or significantly reduced operations. Young startups have been impacted as funding has fallen. Fast-moving consumer goods companies in
1760-498: Is being compared to what has happened in other countries such as Germany, Brazil and Japan. Jefferies Group said that the government can spend ₹ 1.3 lakh crore (equivalent to ₹ 1.5 trillion or US$ 18 billion in 2023) to fight the impact of coronavirus. Bloomberg's economists say at least ₹ 2.15 lakh crore (equivalent to ₹ 2.5 trillion or US$ 30 billion in 2023) needs to be spent. Former CEA Arvind Subramanian said that India would need
1848-598: Is equal to 100 lakh in the Indian numbering system . It is written as 1,00,00,000 with the local 2,2,3 style of digit group separators (one lakh is equal to one hundred thousand , and is written as 1,00,000). It is widely used both in official and other contexts in Afghanistan , Bangladesh , Bhutan , India , Myanmar , Nepal , and Pakistan . The word crore derives from the Prakrit word kroḍi , which in turn comes from
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#17328554968661936-480: Is often known as the taxpayer's tax year or taxable year. Taxpayers in many jurisdictions may choose their tax year. Some federal countries, such as Canada and Switzerland, require the provincial or cantonal tax year to align with the federal year. In the United States, most states retained a 30 June fiscal year-end date when the federal government switched to 30 September in 1976. Nearly all jurisdictions require that
2024-561: Is planning to take loans and raise taxes in certain sectors. Maharashtra put a hold on all new capital works till March next year; spending under government development schemes has been reduced by 67% for the current fiscal. The income of the Madhya Pradesh government has fallen by 85% in April and borrowing has increased. The Delhi government as well as the Andhra Pradesh government imposed
2112-526: Is used in government accounting, which varies between countries, and for budget purposes. It is also used for financial reporting by businesses and other organizations. Laws in many jurisdictions require company financial reports to be prepared and published on an annual basis but generally with the reporting period not aligning with the calendar year (1 January to 31 December). Taxation laws generally require accounting records to be maintained and taxes calculated on an annual basis, which usually corresponds to
2200-479: The Ministry of Statistics released the GDP figures for Q1 (April to June) FY21, which showed a contraction of 24% as compared to the same period the year before. According to Nomura India Business Resumption Index economic activity fell from 82.9 on 22 March to 44.7 on 26 April. By 13 September 2020 economic activity was nearly back to pre-lockdown. Unemployment rose from 6.7% on 15 March to 26% on 19 April and then back down to pre-lockdown levels by mid-June. During
2288-544: The Sanskrit koṭi ( कोटि ), denoting ten million in the Indian number system , which has separate terms for most powers of ten from 10 up to 10 . The crore is known by various regional names. Large amounts of money in India , Bangladesh , Nepal , and Pakistan are often written in terms of crore . For example 150,000,000 (one hundred and fifty million) rupees is written as "fifteen crore rupees ", " ₹ 15 crore". In
2376-573: The Solar Hejri calendar ) and concludes on next year's 20th or 21 March (29th or 30th of Esfand in the Solar Hijri calendar ). In Ireland , the fiscal year is the calendar year, 1 January to 31 December. Until 2001, it was the year ending 5 April, as in the United Kingdom, but was changed with the introduction of the euro . The 2001 tax year was nine months, from April to December. In Israel ,
2464-498: The World Bank , the current pandemic has "magnified pre-existing risks to India's economic outlook". The World Bank and rating agencies had initially revised India's growth for FY2021 with the lowest figures India has seen in three decades since India's economic liberalization in the 1990s . However, after the announcement of the economic package in mid-May, India's GDP estimates were downgraded even more to negative figures, signaling
2552-500: The 2020 GDP forecast. The 2016 Indian banknote demonetisation and goods and services tax enactment in 2017 led to severe back to back disruptions in the economy. On top of this there had been numerous banking crises such as the Infrastructure Leasing & Financial Services crisis and government scheme failures such as that of ' Make in India '. There was also a significant "income crunch" for both rural and urban sectors in
2640-507: The 21-day lockdown orders. On 23 March 2020, stock markets in India post worst losses in history. SENSEX fell 4000 points (13.15%) and NSE NIFTY fell 1150 points (12.98%). However, on 25 March, one day after a complete 21-day lock-down was announced by the Prime Minister, SENSEX posted its biggest gains in 11 years, adding a value of ₹ 4.7 lakh crore (equivalent to ₹ 5.5 trillion or US$ 66 billion in 2023) for investors. On 8 April, following positive indication from
2728-563: The FY21 of 1.9% GDP growth was still the highest among G-20 nations. Confederation of Indian Industry (CII) estimated that India's GDP for FY21 will be between 0.9% and 1.5%. On 28 April the former Chief Economic Advisor (CEA) to the Government of India has said that India should prepare for a negative growth rate in FY21. On 22 May the RBI Governor Shaktikanta Das also said India's GDP growth will remain negative in FY21. Following
Economic impact of the COVID-19 pandemic in India - Misplaced Pages Continue
2816-470: The GDP figures for Q1 FY2021, which showed a contraction of 24%. India's exports in April 2020 fell by −36.65% year-on-year, while imports in April 2020 fell by −47.36% as compared to April 2019. Night lights and economic activity are connected. In Delhi, night light radiance fell 37.2% compared to 1–31 March 2019. This was the biggest fall for any metro in India. Bangalore fell 32% while Mumbai dropped by 29%. India's fuel demand in April 2020 as compared to
2904-461: The GDP growth slowdown to 3.1% in Q4 FY20 is mainly due to the coronavirus pandemic effect on the Indian economy. The CEA pointed out that the ratings of over 30 countries have also been downgraded. On 1 June, Moody's downgraded India's sovereign ratings to its lowest grade. Moody's clarified that while the rating downgrade was happening amid the coronavirus pandemic, "it was not driven by the impact of
2992-760: The Persian or Solar Hijri calendar used in Afghanistan at the time. Following transfer of power to the Taliban administration in September 2021, Afghanistan abandoned the Solar Hijri calendar in favour of the Lunar Hijri calendar . The fiscal cycle was restarted with effect from 1 Muharram 1444 AH (30 July 2022) In Australia , a fiscal year is commonly called a "financial year" (FY) and starts on 1 July and ends on
3080-480: The Prime Minister announced an overall economic stimulus package worth ₹ 20 lakh crore (equivalent to ₹ 24 trillion or US$ 280 billion in 2023). Two days later the Cabinet cleared a number of proposals in the economic package including a free food grains package. In December 2020, a Right to Information petition revealed that less than 10% of this stimulus had been actually disbursed. By July 2020,
3168-561: The Prime Minister, included previous government actions, including the RBI announcements. The previous RBI announcements included around ₹ 8 lakh crore (equivalent to ₹ 9.4 trillion or US$ 110 billion in 2023) liquidity .The economic package also included the Finance Minister announcement of a package totaling ₹ 170,000 crore (equivalent to ₹ 2.0 trillion or US$ 24 billion in 2023) on 26 March. The strategy of combining fiscal and monetary, liquidity measures
3256-567: The UK calendar despite being listed in India. Companies following Indian fiscal year get to know their economic health on 31 March of every Indian financial or fiscal year. The current fiscal year was adopted by the colonial British government in 1867 to align India's financial year with that of the British Empire. Prior to 1867, India followed a fiscal year that ran from 1 May to 30 April. On 4 May 2017, Madhya Pradesh announced that it would move to
3344-711: The Wall Street that the pandemic may have reached its peak in the US, the stock markets in India rose steeply once again. By 29 April, Nifty held the 9500 mark. In the third week of March, Amazon announced that it would stop sale of non-essential items in India so that it could focus on essential needs. Amazon followed the same strategy in Italy and France. On 25 March, Walmart -owned Flipkart temporarily suspended some of its services on its e-commerce platform and would only be selling and distributing essentials. BigBasket and Grofers also ran restricted services, facing disruptions due to
3432-409: The announcement of India's economic package numerous agencies downgraded their GDP predictions for FY21. Ratings agency ICRA downgraded estimates to −5%, Goldman Sachs also predicted the same estimate of −5%. These revised GDP estimates signalled a deep recession. On 26 May, CRISIL made the following statement: India's fourth recession since independence, the first since liberalisation and perhaps
3520-490: The announcement of the economic package, the Finance Minister announced a change in the FDI cap from 49% to 74% for defense, the corporatization of India's ordnance production and a list for the ban of select defense imports. State governments incurred huge losses to the extent of having to cut capital expenses as well as government plans in the near future and finding alternate ways to pay salaries. The Delhi government has fallen 90% short in tax collection as compared to 2019 and
3608-595: The beginning of the financial year 2020–21. While the delivery of S-400 missile systems won't be affected, the delivery of Rafale fighter jets was reported to maybe being affected. However, on 24 March, France confirmed that there will be no delay in the delivery of the 36 Rafale jets. In May, the Chief of Defence Staff General Bipin Rawat again emphasized the need for India to minimize costly defense imports and boost domestic production. "Covid-19 has affected everybody [...] have
Economic impact of the COVID-19 pandemic in India - Misplaced Pages Continue
3696-544: The center was keen to resume economic activities, while the Chief Ministers had mixed reactions. Prime Minister Modi announced the first 21 days of India's lockdown on 24 March. During this address to the nation he said, " Jaan hai toh jahaan hai " ( transl. Only if there is life there will be livelihood ). On 11 April, in a meeting with the Chief Minister's of India, the Prime Minister said "Our mantra earlier
3784-465: The country have significantly reduced operations and are focusing on essentials. Stock markets in India posted their worst losses in history on 23 March 2020. However, on 25 March, one day after a complete 21-day lockdown was announced by the Prime Minister, SENSEX and NIFTY posted their biggest gains in 11 years. The Government of India announced a variety of measures to tackle the situation, from food security and extra funds for healthcare and for
3872-626: The country's financial system. The World Bank and Asian Development Bank approved support to India to tackle the coronavirus pandemic. The different phases of India's lockdown up to the "first unlock" on 1 June had varying degrees of the opening of the economy. On 17 April, the RBI Governor announced more measures to counter the economic impact of the pandemic including ₹ 50,000 crore (equivalent to ₹ 590 billion or US$ 7.1 billion in 2023) special finance to NABARD , SIDBI , and NHB . On 18 April, to protect Indian companies during
3960-527: The day that is closest to a particular date (for example, the Friday closest to 31 December). Under such a system, some fiscal years have 52 weeks and others 53 weeks. The calendar year is used as the fiscal year by about 65% of publicly traded companies in the United States and for most large corporations in the United Kingdom. That is the case in many countries around the world with a few exceptions such as Australia, New Zealand, and Japan. Many universities have
4048-402: The economic package did not address short term demand concerns, which may in turn pull down the economy even more; with most of the announcements being related to supply. It was also reported by economists such as Sonal Varma , Nomura Global Market Research, that "long pending politically sensitive reforms" have been pushed through during this time and with this package. While the economic package
4136-559: The economy and relax the lockdown, agricultural businesses such as dairy, tea, coffee, and rubber plantations, as well as associated shops and industries, reopened. By the end of April, ₹ 17,986 crore (equivalent to ₹ 210 billion or US$ 2.5 billion in 2023) had been transferred to farmers under the PM-KISAN scheme. Odisha passed new laws promoting contract farming . Major companies in India such as Larsen and Toubro , Bharat Forge , UltraTech Cement , Grasim Industries ,
4224-408: The end of a week (e.g., 52 or 53 weeks in length, and therefore is not exactly one calendar year in length), or opt for its financial year to end on a date that matches the reporting cycle of its foreign parent. All entities within the one group must use the same financial year. For government accounting and budget purposes, pre- Federation colonies changed the financial year from the calendar year to
4312-730: The fashion and retail wing of Aditya Birla Group , Tata Motors and Thermax momentarily suspended or significantly reduced operations in a number of manufacturing facilities and factories across the country. iPhone producing companies in India also suspended a majority of operations. Nearly all two-wheeler and four-wheeler companies put a stop to production till further notice. Many companies have decided to remain closed till at least 31 March such as Cummins which has temporarily shut its offices across Maharashtra. Hindustan Unilever , ITC and Dabur India shut manufacturing facilities except for factories producing essentials. Foxconn and Wistron Corp , iPhone producers, suspended production following
4400-410: The festive season and a much higher capital expenditure for both the centre and states. Interest free loans for states to boost capital expenditure has been made available. On 12 November 2020, the government announced ₹ 2.65 lakh crore (equivalent to ₹ 3.1 trillion or US$ 37 billion in 2023) worth of economic stimulus. Sectors such as housing and infrastructure were targeted in
4488-557: The first 21 days of the lockdown, according to Acuité Ratings . Barclays said the cost of the first 21 days of shutdown as well as the previous two shorter ones will total to around ₹ 8.5 lakh crore (equivalent to ₹ 10 trillion or US$ 120 billion in 2023). Confederation of Indian Industry (CII) had sought an economic fiscal stimulus package of 1% of India's GDP amounting to ₹ 2 lakh crore (equivalent to ₹ 2.4 trillion or US$ 28 billion in 2023). The fiscal package and fiscal policies approach
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#17328554968664576-519: The first two weeks of May month by the Public Health Foundation of India , Harvard T H Chan School of Public Health and the Centre for Sustainable Agriculture found that "10% of farmers could not harvest their crop in the past month and 60% of those who did harvest reported a yield loss" and that a majority of farmers are facing difficulty for the next season. Due to logistical problems following
4664-551: The fiscal year is 1 July to 30 June. In France , the fiscal year is the calendar year, 1 January to 31 December, and has been since at least 1911. In Germany, the fiscal year runs from 1 January until 31 December. In Greece , the fiscal year is the calendar year, 1 January to 31 December. In Hong Kong , the government's financial year runs from 1 April to 31 March. However, a company incorporated in Hong Kong can determine its own financial year-end, which may be different from
4752-485: The fiscal year is the calendar year, 1 January to 31 December. In Italy , the fiscal year is the calendar year, 1 January to 31 December. It was changed in 1965, before which it was 1 July to 30 June. In Japan , the government's financial year is from 1 April to 31 March. Japan's income tax year is 1 January to 31 December, but corporate tax is charged according to the corporation's own annual period; most Japanese corporations elect their annual period to follow
4840-407: The fiscal year is the calendar year, 1 January to 31 December. In Bulgaria , the fiscal year is the calendar year, 1 January to 31 December, both for personal income tax and for corporate taxes. In Canada , the government's financial year is 1 April to 31 March. (Q1 1 April – 30 June, Q2 1 July – 30 Sept, Q3 1 Oct – 31 Dec and Q4 1 Jan – 31 Mar) For individual taxpayers,
4928-434: The fiscal year is the calendar year, 1 January to 31 December. In China , the fiscal year for all entities is the calendar year, 1 January to 31 December, and applies to the tax year, statutory year, and planning year. In Colombia , the fiscal year is the calendar year, 1 January to 31 December. In Costa Rica , the fiscal year is the calendar year. January to December. As of 2019 when the tax laws changed. In Egypt ,
5016-411: The fiscal year used for government purposes. The calculation of tax on an annual basis is especially relevant for direct taxes , such as income tax. Many annual government fees—such as council tax and license fees, are also levied on a fiscal year basis, but others are charged on an anniversary basis. Some companies, such as Cisco Systems , end their fiscal year on the same day of the week each year:
5104-550: The following estimates: -5.6% in Q3CY20, −2.8% in Q4CY20 and −1.4% in Q1-2021. The contraction that India is expected to see in the FY21 will not be uniform, rather it will differ according to various parameters such as state and sector. Agriculture and government sectors are likely not to see any contraction. On 1 September 2020, the Ministry of Statistics and Programme Implementation released
5192-476: The form of emergency credit. On 18 April 2020, India changed its foreign direct investment (FDI) policy to curb "'opportunistic takeovers/acquisitions' of Indian companies due to the current pandemic", according to the Department for Promotion of Industry and Internal Trade . With the fall in global shares prices, there is concern that China could take advantage of the situation, leading to hostile takeovers. While
5280-427: The government fiscal year (1 April to 31 March). In Lithuania , the fiscal year is the calendar year, 1 January to 31 December. In Macau , the government's financial year is 1 January to 31 December. In Malaysia , the tax year for individuals is the calendar year, from 1 January to 31 December. The Companies Act 2016 does not state when the fiscal year must start for companies, so businesses are free to choose
5368-572: The government fiscal year. In India , the government's financial year runs from 1 April to 31 March the following year. The financial year from 1 April 2024 to 31 March 2025 would generally be abbreviated as FY 2024-25 or( FY24-25) ( FY2024/25),(FY2024/2025),(FY24/25), but it may also be called FY 2025 or FY25 on the basis of the ending year. Companies following the Indian Depositary Receipt (IDR) are given freedom to choose their financial year. For example, Standard Chartered's IDR follows
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#17328554968665456-520: The government function? Every year, in April we used to make at least Rs 3,500 crore revenue, this year, we have made only Rs 300 crore revenue. We can't pay salaries with this money" Arvind Kejriwal , Delhi Chief Minister , 4 May 2020, On 12 May the Prime Minister, in an address to the nation, said that the coronavirus crisis should be seen as an opportunity, laying emphasis on domestic products and "economic self-reliance", an Atmanirbhar Bharat ( transl. Self-reliant India ) through
5544-522: The lives of Indian citizens, it is nothing." (translation, original in Hindi) Prime Minister Modi , speech to the nation, 10 am, 14 April 2020, Globally in a poll by the 'Edelman Trust Barometer', out of the 13,200+ people polled, 67% agreed that "The government's highest priority should be saving as many lives as possible even if it means the economy will recover more slowly"; that is, life should come before livelihood. For India,
5632-548: The lockdown tea estates were unable to harvest the first flush . The impact of this on the second flush is not known. The entire Darjeeling tea based tea industry will see significant fall in revenue. Tea exports could see a yearly drop up to 8% as a result. In March 2020, tea exports from India fell 33% in March as compared to March 2019. During the lockdown, food wastage increased due to affected supply chains, affecting small farmers. From 20 April, under new lockdown guidelines to reopen
5720-443: The lockdown, an estimated 140 million (140 million) people lost employment while salaries were cut for many others. More than 45% of households across the nation have reported an income drop as compared to the previous year. The Indian economy was expected to lose over ₹ 32,000 crore (equivalent to ₹ 380 billion or US$ 4.5 billion in 2023) every day during the first 21-days of complete lockdown , which
5808-405: The lockdown. Delhi Police began issuing delivery agents curfew passes to make it easier for them to keep the supply chain open. E-commerce companies also sought legal clarity related to defining "essentials". The Department of Military Affairs led by the Chief of Defence Staff postponed all capital acquisitions until the coronavirus pandemic recedes. No new major defense deals would be made in
5896-485: The lowest figures India has seen in three decades since India's economic liberalization in the 1990s . On 12 April 2020, a World Bank report focusing on South Asia said that India's economy is expected to grow 1.5% to 2.8% for FY21. The World Bank report said that the pandemic has "magnified pre-existing risks to India's economic outlook". In mid-April the International Monetary Fund projection for India for
5984-486: The near future. In April, former Reserve Bank of India chief Raghuram Rajan said that the coronavirus pandemic in India may just be the "greatest emergency since Independence", while the former Chief Economic Advisor to the Government of India said in April that India should prepare for a negative growth rate in FY21. The Indian economy was expected to lose over ₹ 32,000 crore (equivalent to ₹ 380 billion or US$ 4.5 billion in 2023) every day during
6072-432: The new FDI policy does not restrict markets, the policy ensures that all FDI from countries that share a land border with India will now be under scrutiny of the Ministry of Commerce and Industry . In India up to 53% of businesses have specified a certain amount of impact of shutdowns caused due to coronavirus on operations, as per a FICCI survey in March. By 24 April the unemployment rate had increased nearly 19% within
6160-402: The next 30 June. Financial years are designated by the calendar year of the second half of the period. For example, financial year 2025 is the 12-month period ending on 30 June 2025 and can be referred to as FY2024/25. It is used for official purposes, by individual taxpayers and by the overwhelming majority of business enterprises. Business enterprises may opt to use a financial year that ends at
6248-421: The pandemic", rather because of reasons such as "weak implementation of economic reforms since 2017" and "a significant deterioration in the fiscal position of governments (central and state)". Moody's rating is now the same as ratings given by S&P Global Ratings and Fitch Ratings , which also rate India with the lowest investment grade. In July, Jefferies' reaffirmed a 5% real GDP contraction. Nomura gave
6336-408: The pandemic, the government changed India's foreign direct investment policy . The Department of Military Affairs put on hold all capital acquisitions for the beginning of the financial year. The Chief of Defence Staff has announced that India should minimize costly defense imports and give a chance to domestic production; also making sure not to "misrepresent operational requirements". On 12 May,
6424-437: The poll showed a ratio of 64% to 36%, where 64% of the people agreed that saving as many lives as possible was a priority, and 36% agreed that saving jobs and restarting the economy was the priority. In India the life versus livelihood debate also played out, with the government first announcing that life would be prioritized over livelihood, which later changed to an equal importance being given to life and livelihood. By mid-May
6512-418: The previous year fell nearly 46%. Consumption of fuel was the lowest since 2007. Cooking gas (LPG) sales rose ~12%. An International Energy Agency report in April estimated India's annual fuel consumption will decline 5.6% in 2020. Diesel demand will drop ~6%. By the first half of June 2020, India's fuel demand was 80–85% of what it was before the lockdown. However the Indian oil minister said that it would take
6600-516: The states, to sector related incentives and tax deadline extensions. On 26 March a number of economic relief measures for the poor were announced totaling over ₹ 170,000 crore (equivalent to ₹ 2.0 trillion or US$ 24 billion in 2023). The next day the Reserve Bank of India also announced a number of measures which would make available ₹ 374,000 crore (equivalent to ₹ 4.4 trillion or US$ 53 billion in 2023) to
6688-582: The tax year be 12 months or 52/53 weeks. However, short years are permitted as the first year or when changing tax years. Most countries require all individuals to pay income tax based on the calendar year. Significant exceptions include: Many jurisdictions require that the tax year conform to the taxpayer's fiscal year for financial reporting. The United States is a notable exception: taxpayers may choose any tax year, but must keep books and records for such year. In some jurisdictions, particularly those that permit tax consolidation , companies that are part of
6776-405: The third package. Stimulus for provided for domestic defence manufacturing and green energy. By 7 September 2020, PM Garib Kalyan Yojana provided support to the tune of ₹ 68,820 crore (equivalent to ₹ 810 billion or US$ 9.7 billion in 2023). In December 2020, a Right to Information petition revealed that less than 10% of the package had been actually disbursed, chiefly in
6864-476: The unorganised sectors. A direct cash transfer scheme for the most vulnerable is also being considered, as has happened in other countries. On 8 April 2020, the managing director of Bajaj Auto , Rajiv Bajaj , wrote in an opinion piece in the Economic Times that the "lockdown makes India weak rather than stronger in combating the epidemic," and that the current "arbitrary" lockdown was totally unsustainable and
6952-648: The world changed after the world wars . During the meeting Modi said " Jan se lekar jag tak " ( transl. From an individual to the whole of humanity ) would be the new principle and way of life. On 12 May, the Prime Minister addressed the nation saying that the coronavirus pandemic was an opportunity for India to increase self-reliance. He proposed the Atmanirbhar Bharat Abhiyan (Self-reliant India Mission) economic package. "The time has come to re-open Delhi. We will have to be ready to live with coronavirus." [...] "How will we pay salaries? How will
7040-488: The world. Foreign direct investment is welcome, technology is welcome [...] self-reliant India... translates to being a bigger and more important part of the global economy." Shashi Tharoor called the 'Self-reliant India Mission' a repackaged version of Make in India . India's overall economic package was announced as ₹ 20 lakh crore (equivalent to ₹ 24 trillion or US$ 280 billion in 2023), 10% of India's GDP. The package, though announced on 12 May by
7128-450: The worst to date, is here. State Bank of India research predicts a contraction of over 40% in the GDP in Q1 FY21. For the states, the total loss due to COVID-19 is estimated at 13.5% of the total Gross state domestic product . The Ministry of Statistics released India's GDP estimates for Q4 FY20 at 3.1% while the overall GDP for FY20 is 4.2%. Krishnamurthy Subramanian , the current CEA, said
7216-400: The year prior to the lockdown. On 27 March, Moody's Investors Service (Moody's) revised its estimate of India's GDP growth for 2020 from 5.3% to 2.5%. Fitch Ratings revised its estimate for India's growth to 2%. 'India Ratings & Research' also downgraded the FY21 estimate to 3.6%. In April 2020, the World Bank and rating agencies downgraded India's growth for fiscal year 2021 with
7304-429: Was jaan hai toh jahaan hai but now it is jaan bhi jahaan bhi ( transl. Both, lives and livelihood matter equally )." On 14 April, another address to the nation was made by Modi in which he extended the lockdown, with adjustments, to 3 May. In the Prime Minister's fifth meeting with the Chief Ministers on 11 May, the Prime Minister said that Indians must prepare for the post coronavirus pandemic world, just as
7392-467: Was criticised on various fronts, it was also given neutral to positive responses on other fronts such as for the necessary caution the government showed in its spending. On 12 October 2020, the finance minister announced another economic stimulus package which aimed at boosting demand. This package has been launched keeping in mind the upcoming festive season. The package includes perks for central government employees to spend more on consumer durables during
7480-402: Was declared following the coronavirus outbreak . Under complete lockdown, less than a quarter of India's $ 2.8 trillion economic movement was functional. Up to 53% of businesses in the country were projected to be significantly affected. Supply chains have been put under stress with the lockdown restrictions in place; initially, there was a lack of clarity in streamlining what an "essential"
7568-457: Was defended by the government. Sitharaman explained that other countries had also done the same. Estimates of the size of India's fiscal stimulus as a percentage of GDP varied between 0.75% and 1.3%. The Finance Minister, for five days, between 13 and 17 May, held press conferences in which the details of the economic package was explained. The economic package consisted of a mix of reforms, infrastructure building, support to stressed businesses and
7656-451: Was difficult for it to meet in November and December to pass a budget. The Financial year is split into four quarters which cover the following periods: In Austria , the fiscal year is the calendar year, 1 January to 31 December. In Bangladesh , the fiscal year is 1 July to the next 30 June. In Belarus , the fiscal year is the calendar year, 1 January to 31 December. In Brazil ,
7744-547: Was estimated that the loss to the tourism industry will be ₹ 15,000 crore (equivalent to ₹ 180 billion or US$ 2.1 billion in 2023) for March and April alone. CII , ASSOCHAM and FAITH estimate that a huge chunk of the workforce involved with tourism in the country faces unemployment. Live events industry saw an estimated loss of ₹ 3,000 crore (equivalent to ₹ 35 billion or US$ 420 million in 2023). A number of young startups have been impacted as funding has fallen. A DataLabs report shows
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