Timely booster shots are quintessential to keep the economy afloat
With the reopening of the economy in progress post the strong second wave of Covid-19, business conditions look relatively better than that during complete lockdown in the same period last year. However, most of the businesses including real estate continue to face headwinds due to weak market conditions. In this scenario, it was timely for the government to intervene and look at reducing the economic impact of this resurgence.
Significant financial support in different forms for several critical sectors to the tune of INR 6.3 lakh crore has been announced. The health sector and related subsectors have been accorded priority by providing INR 1.1 lakh crore loan guarantee scheme for upscaling the medical infrastructure.
To alleviate the economic hardships faced in the aftermath of the second wave, the emergency credit line guarantee scheme (ECLGS) has been enhanced by 50% by providing additional INR 1.5 lakh crore under the scheme. This financial aid will help small and medium enterprises to resume their businesses and support overall economic growth through job creation and output augmentation.
In a bid to rescue the adversely impacted small borrowers, an enhanced credit line to support them has been announced. Furthermore, the government has declared financial support for the tourism sector; an extension of ‘Bharat Rozgar Yojana’ and ‘Pradhan Mantri Gareeb Kalyan Anna Yojana’ will ensure that the non-privileged sections of the society can sustain.
Real estate which is the second-largest employer after agriculture is expected to receive significant gains from these measures and incentives to support businesses owing to its multi-sectoral linkages and multiplier effect on employment generation and economic growth.