The ability of the corporate sector to take measured investment risks, as well as investor sentiment in the country, will eventually prove to be determining elements in steering the economy on a revival path. The initial Covid-19 wave of the beginning of 2020 has affected world economies and disrupted the functional skills of global value chains & enhanced
populations’ lives and livelihoods across a range of economic and social strata. The government has unveiled massive measures of economic stimulus to relieve the covid-19 sectors affected immediately and stimulate growth. The first Rs 1.19 lakh crore stimulus package included the implementation of Rs 1.46 lakh crore-linked production incentives (PLI) over five years. The overture of the major stake stakes is into the potential of growing into a certain kind of space to overcome the possibilities of the following circumstances to provide the exterior value of certain situations. The government expanded the Emergency Credit Line Guarantee Scheme (ECLGS) with Rs 1.5 lakh crore in the second measure announced following the second covid 19 waves. A new Rs 7,500 crore scheme has also been developed to provide loans up to Rs 1,25 lakh, through microfinance institutions, for small borrowers. Although the government has launched the right policies and reforms to instill confidence in the economy, it will have no leading role in economic development and its reactivity and sustainability.
The second wave of covid-19 wreaked havoc on a business, discouraging investors and sectors alike. During these trying times, government funding in the form of fiscal incentives has only served to stimulate consumption and offer economic stability to low-income people. Even though the second wave of the epidemic reached rural areas that had shown strong resistance to the first 19 waves, government assistance was unable to improve consumer morale. Demand and consumption in the country’s villages have decreased. With the containment of the second wave, a significant component of economic activity is attempting to open up, and commercial and industrial activity is returning to normalcy. If everything appears to be normal and there are no serious setbacks shortly. For investors
and industry, it will most likely remain current. It won’t make much of a difference if the government offers perks when the industry is in a position to invest.
The number of initial public offerings (IPOs) and company valuations are on the rise. Companies are under pressure to begin investing or purchasing as a result of this.
Corporates are constantly under pressure to make risky investment decisions.
The ruling government was elected on a platform of “more governance, less government.” It continues to act as a catalyst for improving investor sentiment and establishing the country as a haven for domestic and international capital.