Covid-19 has changed the way how the world operates. We have to admit that things will never be the same again. Eventually, everything will go back to normal. It’s just that we’ll have to change the description of normal. We all need to be prepared for the new way of life, the new Normal. This pandemic has forced the World & Indian economy into a recession, which means that the Indian economy has started shrinking that resulted in the slow down of economic growth. Amid COVID-19 pandemic, several countries had implemented lock down for almost 2 months to avoid further spread of Coronavirus. Due to the lock down, most Businesses have been shut down and some of them have even died. This economic damage has already affected more people than the disease itself.
Corona virus effect on Global Growth
The International Monitory Fund (IMF) has estimated that the global economic growth in the year 2020 is at -3 % as an outcome which is worse than the 2009 global financial crises. Economies of the US, Japan, Germany, France, Spain, and Italy are expected to contract this year by 5.9, 5.2, 7, 7.2, 8, and 9.1 % respectively. Economies have been hit harder, whereas China’s GDP dropped by 36.6 % in the first quarter of 2020, while South Korea’s output fell by 5.5%.
Corona virus effect on Indian Economy
According to the wiki, the impact of Lock down on the Indian economy due to the 2020 Corona virus pandemic has been broadly disruptive. The World Bank and financial agencies had revised India’s growth for the fiscal year 2021 with the lowest figures India has seen in the last three decades since India’s economic liberalization in the 1990s. CRISIL, an Indian Analytical Company has recently stated that this will perhaps be India’s worst recession since independence. During the lock down, the Unemployment percentage has been raised from 8.7% on the March to 23.5% in May 2020, the highest level on record. Up to 53% of businesses in the country were projected to be significantly affected.
The Government of India announced a variety of measures to tackle the situation, from food security and extra funds for healthcare and the states to sector-related incentives and tax deadline extensions. On March several economic relief measures for the poor were announced totaling over ₹170,000 crores (US$24 billion). The next day the Reserve Bank of India also announced several measures which would make available ₹374,000 crores (US$52 billion) to the country’s financial system. The World Bank and Asian Development Bank approved support to India to tackle the corona virus pandemic.
While there are few sectors and some businesses that will get adversely affected and also get benefited and will see an uptick due to this crisis.
Sectors & Business Affected:
- Auto Sector
- Travel Industry
- Aviation Industry
- Apparel & Textile
- Sports & Fitness
- Building & Construction
- Real Estate
Sectors & Business Benefited:
- Pharmaceutical industry
- Chemical Industry
- Digital & Internet
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