Covid-19 lockdown will lead to slowdown in domestic activity, feels FC's Advisory Council

 Advisory Council to 15th Finance Commission during its two-day meeting felt that impact of COVID-19 lockdown will lead to a slowdown in Indian ecomy. According to reports, Council revealed that domestic activity will witness a slowdown. Along with it, it will also have an impact on cash flows of financial institutions and business enterprises.

  Advisory Council to 15th Finance Commission held a two-meeting on April 23 and April 24 that was chaired by NK Singh, Chairman of 15th Finance Commission. meeting was attended by all members and senior officials of  Commission. Furr,  Dr Sajjid Z Chiy, Dr Prachi Mishra, Neelkanth Mishra and Dr Omkar Goswami joined meeting on April 23, while Dr Arvind Virmani, Dr Indira Rajaraman, Dr DK Srivastava, Dr M Govinda Rao, Dr Sudipto Mundle and Dr Krishnamurthy Subramanian joined meeting on April 24. 

Recovery to be gradual 

According to reports, Advisory Council during its meeting felt that once lockdown is lifted, recovery of ecomy is expected to be gradual, depending on ability of workforce to get back to work, restoration of supplies of intermediates and cash flows and demand for output. Along with it, it stated that magnitude of impact is uncertain, however, it will be significant. Furr, according to Council members,  shortfall in tax and or revenues will be largely due to subdued ecomic activity. 

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India under lockdown 

Prime Minister Narendra Modi on April 14 anunced extension of nationwide lockdown till May 3 in order to contain spread of deadly Coronavirus. He addressed nation as ongoing pan-India lockdown entered its 21st day. 

Read: NASA develops special 'high-pressure ventilator' in just 37 days for COVID-19 patients

All transport services have been stopped, including Indian railways' passenger service goods trains are operational to ensure a steady supply of goods and services across country. India has suspended all visas and barred travel from Afghanistan, Philippines, EU, UK, China, Malaysia and mandatory 14-day quarantine from several or countries. 

Read: Heartbreaking pic of cops sleeping on ground goes viral, netizens laud #CoronaWarriors

Read: 'Out of 57 COVID deaths in state, 39 due to severe co-morbidities': WB Health Committee

(With ANI Inputs)