Call for sacking of Indian-origin chef in UAE after 'anti-Islam' tweet

New Delhi, May 24: The Indian economy is likely to slip into recession in the third quarter of this fiscal as loss in income and jobs and cautiousness among consumers will delay recovery in consumer demand even after the pandemic, says a report.

According to Dun & Bradstreet's latest Economic Observer, the country's economic recovery will depend on the efficacy and duration of implementation of the government's stimulus package.

"The multiplier effect of the stimulus measures on the economy will depend on three key aspects i.e. the time taken for effecting the withdrawal of the lockdown, the efficacy of implementation and duration of execution of the measures announced," Dun & Bradstreet India Chief Economist Arun Singh said.

The report noted that the government's larger-than-expected stimulus package is likely to re-start economic activities.

Besides, measures taken by the Reserve Bank of India like reducing the repo rate by a further 40 basis points to 4 per cent, extending the moratorium period by three months and facilitating working capital financing will also help stimulate the momentum.

Singh said while the measures announced by the government are "positive", most of them have been directed towards strengthening the supply side of the economy, and "it is to be noted that supply needs to be matched with demand", he said.

Besides, "in the absence of cash-in-hand benefits under the government's stimulus package, demand for goods and services is expected to remain depressed", he added.

He further said the loss in income and employment opportunities, and cautiousness among consumers, will lead to a delayed recovery in consumer demand, even after the pandemic. As debt and bad loan levels increase, the banking sector might face challenges.

The report further noted that even as the monetary stimulus is expected to inject liquidity and stimulate demand for a wider section of the economy, the channelisation of funds from the financial institutions will be subjected to several constraints.

The foremost concern being increase in risk averseness, as the balance sheets of firms, households, and banks/NBFCs have weakened considerably and low demand for funds by firms as production activities have been on a standstill during the lockdown period, Singh said.

India has been under lockdown since March 25 to contain the spread of the coronavirus, resulting in supply disruptions and demand compression.

Prime Minister Narendra Modi imposed a nationwide lockdown to control the spread of coronavirus on March 25. It has been extended thrice, with some relaxations. The fourth phase of the lockdown is set to expire on May 31. 

Feb 22: Prime Minister Narendra Modi is unlikely to accompany US President Donald Trump and his family members during their visit to the Taj Mahal in Agra on Monday, official sources said.

The US President will arrive in Ahmedabad at around noon on February 24 for a less that 36-hour visit to India. He will be accompanied by a high-level delegation including First Lady Melania Trump, the President's daughter Ivanka Trump, son-in-law Jared Kushner and a galaxy of top US officials.

After attending an event at Ahmedabad, the Trumps will travel to Agra on Monday afternoon to visit the Taj Mahal before arriving at the national capital for the main leg of the visit.

When asked about reports that Modi may accompany Trump to Agra, official sources said there was no such plan.

They said the visit to the Taj Mahal in Agra by the US President and his family members will afford them the opportunity to view the historical monument suitably. Therefore, no official engagements or presence of senior dignitaries from the Indian side is envisaged there, the sources said.

Apr 9: The UAE Cabinet, chaired by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, adopted a resolution to grant paid leave to select categories of employees at the federal government.

This move is part of a series of precautionary measures and procedures taken by the UAE government to bring the Covid-19 pandemic under control.

The resolution stipulates that married employees of the federal government may take fully paid leave to take care of their children below the age of 16. The age condition shall not apply to people of determination, as well as in cases where a spouse is subject to self-isolation or quarantine that requires no contact with family members, upon a decision from the Ministry of Health and Prevention.

The resolution also applies to employees whose spouses work in vital health-related occupations, such as doctors, nurses, paramedics and other medical jobs that require exposure to infected people, as well as employees of quarantine centres, throughout the emergency period witnessed by the country.

Pursuant to the resolution, the relevant ministry or federal authority may ask employees holding essential technical occupations to work remotely instead of taking leave.

The resolution was issued in line with the UAE government's keenness to support employees and provide them with a safe and healthy working environment, as well as to protect the health and safety of government employees and their families, during the current crisis that requires greater efforts, additional working hours, and in some cases, exposure to infected people.