PM Modi discusses second Covid balm with Finance Minister Nirmala Sitharaman

New Delhi : Prime Minister Narendra Modi on Thursday reviewed the impact of COVID-19 on the Indian economy, and discussed a possible second stimulus with Finance Minister Nirmala Sitharaman to boost sectors hit hard by the pandemic.

Modi held discussions with the Finance Minister as the pandemic hit sectors from small industries to the aviation sector hard with millions of jobs at stake.

The meeting comes amid drastic reduction in GDP growth forecast by various multi-lateral funding agencies for the current fiscal due to the impact of COVID-19 and consequent lockdown.

State of the economy was discussed in details during the meeting, sources said, adding resource mobilisation for taking on the future challenges was also highlighted. As per the World Bank's latest assessment, India is expected to grow 1.5 per cent to 2.8 per cent.

Similarly, the IMF on Tuesday projected a GDP growth of 1.9 per cent for India in 2020, as the global economy hits the worst recession since the Great Depression in 1930s.

The pandemic and consequent lockdown have hit various sectors, including MSME, hospitality, civil aviation, agriculture and allied sector.

The government constituted an empowered group - headed by Economic Affairs Secretary Atanu Chakraborty - which is entrusted with the task of suggesting measures that can bring back economy back on track quickly post the lockdown.

Besides, it was also asked to work on relief and welfare measures for various sectors of the economy as well as for the poor and needy.