An Economic Pandemic - Anushka Kapoor

One lethal virus has paralyzed the economies of almost all the developed and developing nations of the entire world. As of the data of July month, India has apparently witnessed 6,00,000 cases and approximately 18,000 deaths have also been reported. The lockdown was imposed just to cut over these rising rates, but it impacted the economy significantly.

• The World Bank predicted that the Indian Economy will come up with a shrink of approx. 3.2% in FY 2020-21.

• The worst affected sector of the system is the laborers working in the unorganized sector, individuals working out on the wages and some of the private employee.

• The covid-19 induced lockdown disrupted the supply-demand chain and we observed a big halt in all the activities.

• The contribution of the agriculture sector in GDP will surely shrink due to the high costs faced by the farmers and the low productivity.

• The automobile sector was already in a bad state and the lockdown has further deteriorated the situation due to the low demand and supply .

• The tourism industry is the worst hit.

• Building and construction activities were jeopardized due to the lockdown and now the sector will face high transportation costs of inputs material, capital constraints, and a lack of sales.

• Pharmaceuticals, digital and internet economy, FMCG, E-learning, virtual healthcare, contactless technology are the few sectors boosted by the pandemic.

The economy also witnessed a liquidity crunch and the apex bank and the government took stringent measures the repo rates , sold government bonds and increased the moratorium on the repayments of the loans.

The government has decided to extend collateral – free loans of 3 lakh crore, stressed the MSMES and infused equity.

The government also grabbed the public support after extending cash and in-kind transfers directly to the low-income families and further increased the expenditure in the health sector.

Everyone has been introduced to the “NEW NORMAL‘’ and yes the people are gradually adapting to it but this pandemic has raised a lot more questions on the efficiency of the governments. Low income families are going to suffer a lot for a long time. A lot has been done and a lot needs to be done!