Economic impact of COVID-19 pandemic in India By Debalina Mukherjee.


Covid 19 is something that has shattered the whole world. No body was prepared for it. Corona virus or covid 19 has affected different sectors very badly. When it comes to India’s growth it has gone down to 3.1% according to the ministry of Statistics. According to the World bank along with the rating agencies India’s growth has touched its lowest figures and is in worst state since last three decades.CRISIL has already announced that India is perhaps going to see the worst recession in the coming days since it has got its Independence.
Unemployment is becoming a very big issue in India.Within a month of lockdown the unemployment rates rose from 6.7% to 26% and 14 crore people approximately lost their jobs. The business sector got affected very badly. The supply chains were kept on hold and at first there was a big confusion regarding what is ‘essential’ and what is ‘non essential’. Due to the restrictions made by the government this sector has witnessed a lot of loss as well. In the agricultural field the farmers suffered from fear and anxiety. They were not able to bring their produce for sale to the market. They couldn’t cut their crops as well. Their future became absolutely uncertain. Daily wage workers and private sectors were at high risk of facing loss and have to take special measures like work from home etc. Major companies in India such as Larsen & Toubro, Bharat Forge, UltraTech Cement, Grasim Industries, Aditya Birla Group,BHEL and Tata Motors had to slow down their operations for some days. Due to uncertainty and lack of demand, the stock markets also collapsed. Many companies unwillingly had to cut down the salaries of the employees and many employees were asked to leave. The live event companies had also said that they have suffered a loss of more than 3000 crorers.
The small businesses and small scale industrues suffered a lot.. The airlines,markets hotels, big shopping malls were completely closed and people have witnessed unemployment in these sectirs as well.
The Central and State government, both has taken various steps to cover up the loss. Various measures were taken and many scemes were declared sarting from food security and funds for healthcare for different states. Income tax return dates were extended and Electricity and telephone bill submission dates were also extended. On 26 th may some relief measures were declared for the poor and the most suffering sections of the society. On 12 May the Prime Minister of India announced an overall economic package of ₹20 lakh crore (US$280 billion),10% of India’s GDP, with emphasis on India as a self-reliant nation. (Atmanirbhar). Indian government also announced relief measures in the areas of GST ,Customs & Central Excise, Corporate Affairs, Insolvency &Bankruptcy Code (IBC) Fisheries, Banking Sector and Commerce. About 800 million people are going to get free cereals and cooking gas along with cash through direct transfers for three months.The Prime Minister of India has already told and thought of setting up an Economic Task Force to devise policy measures to tackle the economic challenges .
In conclusion I would like to say that covid 19 has affected the world very bady and though the situation is bad still our governments, both Central and State are working on how to recover from this economic crisis that has arised globally.So this is the time for each one of us to join hands and fight this virus and try to contribute as much as we can. We must believe that we are not alone in this and we shall be able to ovecome this situation very soon. Lets take the pledge to listen to what our governments are saying and try to contribute and maintain the lockdown.