The global spread of Covid-19 might well send the world into a global recession. Policymakers around the world are devising measures to fight the slowdown. India, which was already facing growth deceleration, the impact of Covid-19 is likely to pull it down further in the fourth quarter.
According to Chandrajit Banerjee, director general of CII (Confederation Of Indian Industry), first, the government may consider a strong fiscal stimulus to the extent of 1 per cent of GDP. Second, in order to improve market sentiments which are witnessing extreme volatility, the government may consider long-term capital gains tax of 10% and fixing total dividend distribution tax at 25%. Third, GST payments should be on collection of bills rather than raising invoices. he CII director general further said that the RBI may consider relaxing NPA (non-performing asset) recognition norms.