Even if you lift lockdown, it is not going to revive economic activity immediately because consumption will not revive, so demand will not. Investment will not revive, therefore demand will not revive. Only the government is spending, but it is going to lose massive tax revenue. My estimate is that the economy will not recover to January 2020 levels for several years because we are into a deep depression. It is not going to be a V-shaped recovery, it is going to be a shallow U-shaped recovery. But suppose very optimistically we go back to January 2020 in a year, then the average rate growth from (-)75% to 0% means we will have a (-)37.5% rate of growth of the economy. If the rate of growth is (-)37.5%, Tax to GDP ratio will become half of what it was earlier. It is easy to see why. GST collections largely come from non-essential goods and sin goods, those in 43% bracket, 28% and 18% brackets. Essentials are in zero per cent or five per cent brackets. … [Read more...] about Can India’s workforce have a safe return to business?
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Two wheeler financiers say that despite lower cash flows, rural is doing better in the first two weeks of showroom reopening. “Our loan disbursal in smaller towns and cities has begun. We have so far released more than 30000 loans (as against 90000 earlier). The collections are also better. In April, a complete lockdown month we managed 54% collections and in May, so far we have collected 60%,” said YS Chakravarthy, MD & CEO, Shriram City Union Finance.“While we continue to lend 70%-75% loan to value (LTV), the absolute amount of loan may be lesser as vehicle cost has increased post BS6 and also insurance has become costly. In some cases, where we normally lend for 24 months, we have increased it to 30 months as cash flows may be a problem for some sections,” he added. Shriram City is India’s largest two wheeler financier by volume. “Rural demand for two wheelers is expected to be comparatively better than its urban counterpart on account of … [Read more...] about Rural demand may power revival of two wheelers post lockdown
NEW DELHI: Apollo Tyres today said it has resumed operations at its manufacturing plant located at Oragadam near Chennai. "The company has started its production operations. We have made sure that the excess water gets drained into rainwater harvesting system. Storm water drains are clog free. Our employees are safe and secure," the company said in a BSE filing. There is no damage to equipment, it added. "The company only had production loss/consequential loss of profit which is not significant. So far, we have lost 10 shifts production (1,500 MT approximately)," the company said. The firm would be able to assess the insurance loss in due course, once full normalcy is restored, it added. Apollo Tyres had suspended operations at the respective plant due to flooding caused by the heaviest rainfall in Chennai in over a century. … [Read more...] about Apollo Tyres resumes operations at Oragadam plant
NEW DELHI: Arvind Fashions, retailer of brands such as Gap, US Polo, Sephora, Aeropostale and Flying Machine, has deferred payments of 50-80% of staff salaries for April owing to reduced sales and depleting cash flow amid the lockdown forced by Covid-19. Salary payments may be impacted for a few more months until the situation improves, said people aware of the matter. “Arvind Fashions has currently made an on-account payment for salaries in the month of April and not a salary cut,” said Arvind Fashions CEO J Suresh. “On-account payment is done to support employees to take care of their immediate requirements. Since April is a zero sales month we are paying the advance and we will be able to pay the balance when the situation improves and things become normal. As retail is now slowly opening up our intent is to get back to normal salary levels at the earliest.” This may take six to nine months, said an executive, who did not wish to be identified. “The … [Read more...] about Arvind Fashions defers staff pay for April due to Covid blow
Dr J Thomas, former rubber production commissioner, stressed on the need to transform farmers into entrepreneurs. Taking a cue from the tulip fields of the Netherlands, Thomas said the paddy fields in Kuttanadu should be made a tourist hub where foreigners can engage in traditional farming activities. … [Read more...] about Value-added products, change in land use must for agri revolution in Kerala: Manorama webinar