Covid 19 is one the worst pandemic, the world has experienced in decades. It originated in Wuhan, China and has spread across more than 200 countries worldwide. It had led to world-wide lockdown breaking economies of large countries bringing them on their knees. It has led to loss of billions in all countries pushing back their growth rate.
In India the country focused on public health rather than economy. There was complete lockdown in the country for 21 days in the initial days even when the spread was negligible. This helped in containing the infection but this led to losses in various sectors of economy. The highly hit sectors include Travel, Tourism, Manufacturing, Hospitality and construction which suffered thousands of crores of loss. The lockdown is again followed by a 19 days lockdown after completion.
This is going to deeply affect the economy of India.
World Bank:
India is likely to record its worst growth performance since the 1991 liberalisation this fiscal year as the outbreak severely disrupts the economy, the said on Sunday. India's is expected to grow 1.5 per cent to 2.8 per cent in the 2020-21 fiscal which started on April 1, the World Bank said in its South Asia Economic Focus report. It estimated India will grow 4.8 per cent to 5 per cent in the 2019-20 fiscal that ended on March 31.
IMF:
The International Monetary Fund (IMF) further slashed India’s growth estimate for FY21 to 1.9% from 5.8% estimated in January, warning that the “worst recession since the Great Depression” will dwarf the economic damage caused by the global financial crisis a decade back. It also said that India and China would be the only two major economies likely to register growth, with all others contracting. The Covid-19 pandemic will shrink world output by 3% in 2020, IMF said in the April update.
HDFC Bank chief executive Aditya Puri said the Indian economy is in an intensive care unit, requiring both the Reserve Bank of India (RBI) and the government to come up with emergency measures to prevent the economy from slipping into a coma.
Controversial Reviews:
The world economy will go into recession due to the coronavirus pandemic, with the exception of India and China, according to a latest United Nations trade report. Two-thirds of the world living in developing countries are faced with unprecedented economic damage, United Nations Conference on Trade and Development said in its new analysis, calling for a $2.5 trillion rescue package.
Aviation
After the Government of India indefinitely suspended tourist visas, airlines are said to be working under pressure. Nearly 600 international flights to and from India were cancelled for varying periods. Around 90 domestic flights have been cancelled, leading to a sharp drop in airline fares, even on popular local routes.
Private airport operators have requested the Government to grant permission to impose a nominal passenger facilitation charge on airfares to cover the increased operating cost.
Opportunity in a crisis
Like India, several international economies are becoming cognizant of the risk they face by being overly dependent on one market. Making the current situation a learning opportunity, CXOs of Indian multinationals, who recently attended the annual meeting of the Confederation of Indian Industry (CII), believe this is the time India can work on capturing potentially 40% of their competitor’s market share by looking at indigenous production of goods, furthering the country’s Make in India campaign.
India is on the verge of an unprecedented economic catastrophe as the humanitarian disaster from the Covid-19 pandemic unfolds.
The sheer scale of disruption from the ongoing , announced by prime minister Narendra Modi on March 24 to contain the outbreak, is unprecedented in Indian history.
The disruption is much starker than the global financial crisis of 2008, which hit the Indian financial sector and real demand, but did not bring production to a halt. Besides, at the time, the Indian economy was much better placed to handle the crisis, as it had been growing rapidly in the years leading up to 2008.
India was already in the throes of a slowdown when the COVID-19 pandemic struck, and now the country faces a period of significant economic disruption as the country locks down to slow the spread of the virus.
As the world scrambles to ease the immense healthcare burden of the virus, most economies are bracing for the havoc the virus is likely to leave in its wake. Many countries have already announced several rounds of ‘economic packages’ so far to aid businesses, workers and healthcare systems engulfed by the crisis. The Indian government and the RBI have also put in place a slew of measures to help
fight the COVID-19 menace and ameliorate its economic fallout.
The effects of India’s 21-day lockdown are reverberating, with varying degrees of severity, across all the sectors of the Indian economy. The services sector, especially segments such as retail, aviation and entertainment, have been directly (and severely) hit. The manufacturing sector, too, has suffered. Production shutdowns, labour and supply chain disruptions - especially for companies exposed to international trade-as well as falling consumption, have raised serious concerns about the short- to-medium term viability of many businesses, including the MSMEs.
All these insights give us a clear picture on how Indian economy is being hit. “The most vital thing is health ,wealth can be created with time” .Indian will definitely fight back.
