The dangerous wave of Corona Virus is still highly prevalent in India. With almost all the states under strict lockdown and with the proposal of extension of lockdown, this pandemic has created quite a stir sending all the daily activities into hibernation. The big question which has cropped up is: What About the Economic Condition ?? As per the statistics, the economy of not only India but the entire world has suffered a great blow given the current situation.
The Central Government is in quite a dilemma regarding the extension of lockdown as this may cause an economic crisis like never before. This may have quite an effect on the country’s citizens and unemployment may arise which is quite a big problem in a developing country like India. But, as many state CMs have rightly said, people’s health is more important rather than the country’s economy, which can be revived once the situation becomes normal.
So, What Are The Consequences ?? Who is going to be the most affected due to COVID 19?? Is it going to affect the Rich the same way as the poor ?? What about the Country’s Economy ??
These are a few questions that are actually difficult to answer but are also required to be answered.
The Impact on the Indian Economy as well as the World’s Economy is immeasurable. As PM Modi announced a complete nationwide lockdown on March 25th, for a period of 21 days, more than half of the activities like the exports, imports, investments, travel and hospitality industry, entertainment industry, malls, cinema halls, etc came to a sudden standstill. Only essential activities like banking, media, food, and groceries, agriculture, and some public services were given permission to operate with all the necessary precautions.
As per the statistics, the nation’s 21-day lockdown might have cost India Rs. 7-8 trillion. This pandemic has literally arrived in India at a very unfortunate time, at the end of the financial year in India which caused a disruption in many financial activities. The most worst-hit industries are transport, restaurants, real estate, and entertainment industries.
The arrival of this pandemic is inconvenient and untimely for the Indian Economy as the Indian Economy was showing slight signs of improvement and growth before this terrible tragedy. The sudden advent of this pandemic is creating a considerably great economic crisis.
The estimated loss to the real estate sector is being stated as 1 lakh crore.
As per the prediction Of the World Bank, the Indian Economy is expected to grow 1.5 percent to 2.8 percent in 2020-2021 fiscal which can be termed and registered as the slowest growth since 1991.
According to the experts, GDP could fall below 5% in the financial year 2020-2021 and the effect of COVID 19 could show in the fourth quarter of the financial year after a predicted slow down to 4.7% in the third quarter.
As per Raghuram Rajan, former RBI Chief, the Corona Virus pandemic in India can be termed as the “greatest emergency situation since Independence”.
The monetary losses being incurred by various industries are immense.
The live events industry has reportedly experienced a loss of Rs. 3000 crore. Hotels and airlines are laying off employees. The stock market in India has reported the worst loss in its history. SENSEX experienced a fall and growth respectively. According to the World Bank, this pandemic will enhance and intensify the already existing risks that the Indian economy is facing.
The tourism industry will face adverse effects in the months of March and April.
As per the expert reports, it will definitely take three months at the least for the situation to go back to normal.
The citizens living below the poverty line and middle-class citizens of the country will be hit by this pandemic. The lockdown will affect the daily wage workers as they would not able to work daily and this will affect their daily activities. This current situation may also affect the middle-class people where there would be only one bread earner in the family and all the family members would be financially dependent on that one person.
All this must be taken into consideration by the Government and they must ensure that people don’t lose their jobs because of the existing situation. Our Honourable Prime Minister has already made it pretty clear that no employer is justified to remove an employee from employment in the current situation.
Also, another dreading thought is that many software and IT companies which are US And UK based have already fallen prey to this pandemic and may rely on layoffs and cost-cutting to cope up with the situation. This may lead to job uncertainty of lakhs of employees working for these MNCs in India.
Due to this, Unemployment may become another growing concern in our Country.
So, Will This Situation Ever sees the Light of the day ?? Will everything go back to normal ?? Will India be able to rise above this Pandemic ?? Will the world become a better place or Is It Going to be Pushed Back to Something More Worse ??
What will the World Be Like in the aftermath of COVID 19??
So many Unanswerable Questions !!! What is it going to be like in the future then ????
Only Time will Tell !!!!!