Despite grim outlook, fiscal stimulus unlikely for India Inc this year

"The impact on GDP would not be significant due to lockdowns in some states and the estimates made in the Budget have been conservative," said another government official

Despite a grim economic outlook amid a worsening Covid-19 crisis and lockdowns in major cities, government officials have ruled out any fiscal support to industry for now.

They say that a stimulus package may not be necessary because, unlike last year’s total lockdown, public transport, including the railways and airlines, is running and the restrictions on movement are localised and, in some cases, are partial rather than total.

“It is premature to think of a fiscal stimulus package. In fact, it won’t be necessary as the impact is nowhere close to what it was last year. Not everything is shut down,” a