New Delhi: The finance ministry in its monthly report for July said the economy is still not out of the woods due to the impact of coronavirus.
The intermittent lockdowns and rising number of coronavirus cases are denting prospects of its revival, the report said.
The report further said: “The future economic recovery of India is crucially linked to how the COVID-19 infection curve evolves across states of India. The spread of COVID-19 to most States/UTs and the emergence of new hotspots has led the States/UTs to enforce intermittent lockdowns. India’s top 12 growth driving states account for 85 per cent of the COVID-19 caseload, with 40 per cent of confirmed cases concentrated in the top two growth drivers i.e. Maharashtra and Tamil Nadu”.
The government said the agriculture sector is likely to cushion the shock of the pandemic on the Indian economy in 2020-21.
Prime Minister Narendra Modi announced an economic relief package of Rs 20 lakh crore to cushion the impact of coronavirus related lockdown by distributing free food and free cooking gas.