Mumbai (Maharashtra) [India], Sep 22 (ANI): There has been a pick-up in economic activity since the government began gradual relaxations on June 1 after the COVID-19 lockdown but it will be a long way before pre-COVID levels are attained, Care Ratings has said.
The agency conducted a survey of 621 participants from various sectors like manufacturing, BFSI (banking, financial services and insurance), construction, real estate, power, trade and other services.
By March 2021, a little more than two-third of respondents believe they could reach the pre-COVID levels of business, show findings of the survey conducted between August 25 and September 13.
It said micro units have been affected more in terms of impact of lockdown and the migrants issue has been significant. Also, their access to credit is still a challenge.
Growth in non-performing assets is going to be a major issue for industry and more than 50 per cent of the respondents in micro, small and medium (MSME) and large companies expect this ratio to rise.
There are expectations of government intervention in terms of guarantees, deferral of charges, tax subsidy and waiver of payments. There is also big hope on rural demand driving the economy across sectors.
However, there is no enthusiasm when it comes to capacity expansion, which does not bode well for investment. Close to 30 per cent of the sample companies surveyed expect negative growth in sales this year.
"Hence, while things are moving in the right direction, it will be along a gradual slope with some expectations of a push from the government," said Care. (ANI)