The deadly virus which has affected the world and brought all economic activities to a halt has led to an economic slowdown in several developing countries including India.
With signs of a deepening economic slowdown hitting India, senior Congress leader Rahul Gandhi has targeted the Centre over the weakening of Indian companies, thereby becoming ripe for the picking by foreign companies. In a tweet shared on Sunday, the Wayanad MP alleged that Indian companies hit hard by the economic slowdown have become lucrative targets for foreign corporates for takeover and urged the Centre to prevent foreign interests from taking control of such Indian companies.
“The massive economic slowdown has weakened many Indian corporates making them attractive targets for takeovers. The government must not allow foreign interests to take control of any Indian corporate at this time of national crisis,” he tweeted. The Congress leader’s comment came following reports that many foreign institutions had bought stake in Indian companies after a downturn in the economy due to the global outbreak of coronavirus.
The deadly virus which has affected the world and brought all economic activities to a halt has led to an economic slowdown in several developing countries including India. Centre’s March 24 announcement of a complete nationwide lockdown to check the spread of the virus resulted in the suspension of all economic activities, leaving several companies, unable to transact business, in bad shape. The nationwide lockdown is scheduled to end on April 14 and PM Narendra Modi has already dropped ample hints that the situation had “left us with no option but to extend the lockdown by at least two weeks”.
Several agencies and experts have warned of an adverse impact on the Indian economy resulting from the economic activities coming to a grinding halt. According to the World Bank, India will see growth of just 1.5-2.8% in its current financial year and could grow to 5% only in FY2022.
According to the Union Health Ministry data, India has reported 308 COVID-19 related deaths so far while there are 9,152 active coronavirus cases in the country. Globally, the virus has claimed over one lakh lives and infected nearly 1.8 million cases.