Concerns for businesses have risen as the Maharashtra government indicated that the state could be put under lockdown to contain the spread of Covid 19 just when India’s consumption pattern was beginning to reach the pre-Covid level.

Global brokerage Nomura has lowered its growth expectations for India from the earlier 13.5 per cent for 2021-22 to 12.6 per cent.

Though the projected growth rate is still above the average, experts said that India must continue to focus on its economic activities.

However, businesses continue to remain optimistic as the Covid 19 vaccine drive is picking up in the country.

“The situation cannot be compared with last year though the number of cases is rising much faster. Last year, the virus was new and the world was grappling with it. Today, the situation is different. The vaccine is already out. We need to focus on the vaccination drive,” Deepak Sood, secretary general, Assocham said.

According to a State Bank of India (SBI) report, localised lockdowns or restrictions have not resulted in controlling the spread of infection. It also noted that such measure only add to losses in terms of livelihood. It underlined the need to press the pedal on the vaccination drive to control the spread of the virus.

Not just India, but many other countries too witnessing surge in cases

Notably, the resurgence of Covid 19 is not only in India but several other countries such as France, Netherlands, Germany, Poland in Europe, Argentina and Brazil in South America are grappling with the spike in cases once again. Closer home, Bangladesh has also witnessed a surge in the Covid 19 cases.

While these countries have imposed several restrictions including lockdown, businesses in India have categorically maintained that lockdowns have limited impact in controlling the spread of the virus.

Prime Minister Narendra Modi last week assured Indians that there will be no nationwide lockdown and businesses will be allowed to operate normally. However, despite that Maharashtra chief minister Uddhav Thackarey indicated that the state may go in for a lockdown to contain the spread of the virus.

Thackarey held a meeting with members of the Covid 19 task force to take stock of the situation and understand the preparedness of the state, a decision on whether or not the state will go in for a full lockdown will be taken after April 14.

“A full lockdown in Maharashtra would have far reaching economic implications for the overall economic growth at a time when the country is just beginning to recover from the earlier shock,” spokesperson of a multinational company said.

India, which has thrashed out a stimulus package of Rs 29.87 lakh crore — equivalent to 15 per cent of the GDP — in a bid to contain the impact of the virus on health and economy, cannot afford to go in for another lockdown.

Several restrictions such as night curfews and partial lockdown imposed by separate state authorities have already led to a 30 per cent loss of in business activities in retail markets of the country in the last one week, the Confederation of All India Traders (CAIT) said, adding that consumer footfall in retail outlets has also dropped sharply.

Meanwhile, work from home model will continue for corporate India for another few months. Though several companies had chalked out plans of resuming normal office schedule from April, they have now once again put their plans on hold due to the sharp spike in Covid 19 cases in India.