Nirmala Sitharaman is heading a task force that's expected to analyse the effects of COVID-19.
Highlights
- Nirmala Sitharaman will head the COVID-19 Economic Response Task Force
- Coronavirus has had a huge effect on global economy including India
- COVID-19 donations to be counted as "Corporate Social Responsibility"
The government today decided to wait a while and monitor the coronavirus-hit economy further before announcing a bailout package. Earlier today, there was expectation that such a package could be announced shortly, but the government has decided to take more time, sources told NDTV. The task force, headed by finance minister Nirmala Sitharaman was formed four days ago.
During his address to the nation on Thursday, Prime Minister Narendra Modi had announced the formation of the COVID-19 Economic Response Task Force, which he said, would take an overview of the situation and suggest the way ahead.
Ms Sitharaman has already declared that the donations made towards fighting COVID-19 would be counted as "Corporate Social Responsibility".
"In view of the spread of novel #CoronaVirus in India, its declaration as pandemic by the WHO, and decision of Government of India to treat this as notified disaster, it is hereby clarified that spending of CSR funds for COVID-19 is eligible CSR activity. #IndiaFightCorona," her tweet read.
Her tweets also announced the relaxation of compliance provisions by securities exchange board SEBI and the Reserve Bank's decision to conduct variable rate term repos of ₹1,00,000 crores.
In a special address to the nation on Thursday evening, the Prime Minister said the coronavirus already had a huge effect on the global economy. But its impact in India is yet to be analysed.
Worldwide, the economy has gone into a tailspin since the coronavirus started spreading from China' Wuhan. From large airlines to small traders, all have been hit as travel ceased, social distancing started, all shops except essential commodities shut and city after city came under lockdown.
In the US, the Donald Trump government has initiated a trillion-dollar stimulus package for the economy, which, however, has been blocked by Democrats.
But following the US initiative, there have been expectations of a special package from the government, which peaked after it became known that the Prime Minister would address the nation on Thursday.
In Parliament today, the Congress demanded a financial package, saying the government should have done it today. But Speaker Om Birla told Congress's Adhir Ranjan Choudhury that the matter should not be raised as there was an understanding only to pass the finance bill today.
At least half the country, including national capital Delhi, has been placed under lockdown as the coronavirus figures climbed to 433 today. Seven people have died.
Eighty districts are under complete lockdown, which means only essential goods and services are available. Yesterday, railways, metros and inter-state buses were stopped. In states like Punjab, Haryana, Rajasthan, Arunachal Pradesh and Delhi and parts of Bengal and Gujarat, public transport has been banned.