Unlock 2.0 is about to end and many areas in the economy continue to remain prohibited. Financial services company Nomura told CNBC-TV18 that lockdown extensions by most states have impacted demand. Nomura added that the economic growth till June has been uneven and the July indicators are showing a poor picture.
Credit Suisse is also of the view that the country's economic indicators are showing a dismal performance in the month of July due to re-imposition of lockdown in several states. According to Credit Suisse, vehicle registrations were down by 42 percent year-on-year in June and 38 percent in July so far. The monthly issuance of e-way bills is down by 13 percent until the 19th of July, indicating a decline in inter-state movement of goods.
So as we gear up for Unlock 3.0, leading industry body, the Federation of Indian Chambers of Commerce and Industry (FICCI) has released a detailed set of suggestions to the government to lift restrictions on services that are still prohibited. Some of the major suggestions include allowing international air travel, opening tourist sites, hotels, restaurants and bars. FICCI has also recommended opening of metro services with strict adherence to safety protocols. The industry body is also batting for opening of cinema halls, but of course with stringent protocols.
To take this discussion forward CNBC-TV18 is in conversation with Sangita Reddy, president at FICCI and Sudhir Kapadia, National Tax Leader at EY India.