India Plans Stimulus Package For Worst Affected Sectors

-CB Edit Desk 

India is preparing a stimulus package for sectors worst affected by a deadly coronavirus wave, aiming to support an economy struggling with a slew of localized lockdowns, people familiar with the matter said as reported by Bloomberg.

The finance ministry is working on proposals to bolster the tourism, aviation and hospitality industries, along with small and medium-sized companies, the people said, asking not to be identified as the deliberations are private. The discussions are at an early stage and no timeline for an announcement has been decided, they said. A finance ministry spokesman declined to comment to Bloomberg.

The second wave of coronavirus pandemic has been more severe than the last year. Several states had put in strict lockdowns to prevent the virus spread.  This had caused recovery process from the first wave of COVID-19 for the tourism, hospitality sector difficult.

Previously, the Federation of Hotel & Restaurant Associations of India (FHRAI) had said the Indian hotel industry has taken a hit of over Rs 1.30 lakh crore in revenue for the fiscal year 2020-21 due to the impact of the COVID-19 pandemic. FHRAI has requested the RBI for a special window for restructuring of loans especially for the tourism and hospitality sector. 

Federation of Associations in Indian Tourism & Hospitality (FAITH), has made suggestions to the Finance Ministry and Tourism Ministry for GST rationalisation of Indian tourism value chain, to be taken up in the upcoming GST council meeting. National Restaurant Association of India (NRAI) on May 20 sought a rental waiver from landlords.

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