File photo of Krishnamurthy Subramanian. Photograph:( Others )
In the second quarter, he said, the economy could pick up as industries restart their operations with the streamlining of supply chains and migrant workers getting back to their jobs.
Chief Economic Advisor (CEA) K V Subramanian on Monday said that GDP growth in the first quarter (April to June) this fiscal is likely to range between one to two per cent due to COVID-19 pandemic and subsequent lockdown, reported news agency ANI.
The economy could pick up as industries restart their operations with the streamlining of supply chains and migrant workers getting back to their jobs in the second quarter, he reportedly told ANI.
The nationwide lockdown has brought economic activities to a virtual standstill.
Subramanian said that it is difficult to estimate possible job losses due to the lockdown due to lingering uncertainty. However, good companies are likely to retain most of their workforce and with minimum wage cuts, as they resume operations, he told.
The Chief Economic Advisor said the global economic scenario is weak and there is bound to be an impact on Indian exports.
"It is, however, time for Indian industries to revamp their strategies, adopt modern technologies and gear up to compete in global markets as many multinational corporations look towards shifting their manufacturing base out of China,'' he said.
He said Indian cities provide a vibrant ground for migrant workers where they can aspire for good working conditions, better lifestyles, and reasonable education and healthcare facilities compared to their home towns.
Subramanian said the current volatility in the stock market does not reflect strong fundamentals of the Indian economy. The markets ride on sentiments of investors who look for near-term profits in high-growth areas.