Indian economy has faced serious setback due to Covid19 spread in the country. This has affected lacks of people in the country. Many people have lost their life, some have lost their livelihood. Impact of Covid19 on Indian economy is also evident in the economic survey.
The nationwide coronavirus lockdown had led to over 80% of Indians witnessing a dip in their earnings, The findings were revealed in a survey conducted by the Centre for Monitoring Indian Economy (CMIE) in 27 states.
Let’s discuss some impacts of Covid19 on Indian economy
It includes primarily the agriculture in the country. Although it has shown less of the fluctuation, but still the income of farmers has reduced.
Lockdown affected the transport system of the country. it makes difficult for the farmers to transport the agriculture commodities in different parts of country because of increase in transportation cost and decrease in demand.
Further covid 19 have increased burden on agriculture owing to migration by the urban workers in rural areas. This has increased disguised employment in rural areas.
It includes manufacturing units of the country. As the lockdown was announced many workers have lost their jobs leading to increasing unemployment in the country. 122 million people in India lost their jobs in April . This has led them to migrate back to rural areas, many of them lost their life as no transport system was available for them.
Closing of industries have decreased the supply of essential items, that in turn increased the prices of commodities in the country. Even a survey says over 70% of companies are looking at asset disinvestment
Demand for luxury items have decreased leading to loss to automobile sector.
Many medium, small and micro enterprises have been closed due to lockdown due to decrease in demands. Since MSME provide almost .. of employment, closing leads to increase unemployment in both rural and urban areas.
FDI investment have decreased owing to slowdown in economic activities. This led to increase in pressure on banking system for funds. This in turn increase problem of non-performing assets in the country.
This all leads to decrease in GDP of a country. Thus the impact of Covid19 on Indian economy has affected both the present and future of a country.
This sector involves the services in the country. This includes both formal and informal components. Formal components involve the hotel, shops, etc. and informal component involves the road side sellers, housemaid etc.
Unemployment have increased due to sudden lockdown imposed in the country. The poor people got seriously affected as around 70% of them are employed in informal sector.
The banking sector have seen increase on the non-performing assets as the companies and individuals are not able to pay back the loans.
The aviation sector has seen serious slowdown due to ban on international and national flights, this has decreased exports. It was done to curtail the spread of corona virus internationally.
On health sector, this has increased the burden, owing to lack of infrastructure and the trained health professionals. Sudden surge in patients affected with covid 19 led to lack of essential medical equipment’s. Also availability of oxygen was not there, this led to loss of life of many people in the country. The prices of medicines, drugs, masks, sanitizers have come up very high because of increase in demand
Many frauds have come up as a result of fake news. Fake vaccination, fake sanitizers have been marketed in the country.
Comparing with the world, impact of covid19 on Indian economy led to its contraction up to 23% during the first wave of covid 19 in the country. But Indian foreign reserves have increased due to ban on international flights and decrease in crude oil prices in the world.
Efforts by the Indian government to combat crises as follows:
Indian government took many steps to tackle the menace of covid19 in the country and to save the life and livelihood of people
- Finance Minister Nirmala Sitharaman announced a relief package worth Rs1.70 lakh crore in the wake of the Covid-19 outbreak.
- Awareness through social media by the government to prevent spread of virus.
- It has provided various stimulus packages to different sector of economy.
- poor households using 5kg cooking gas cylinders will be entitled to eight free refills in three months as a relief from the disruptions due to the Covid-19 outbreak. The number of free refills will be limited to three for beneficiaries using 14.2kg cylinders.
- The government decided to double the collateral-free loan amount for women in self-help groups to Rs20 lakh.
- Under the National Social Assistance Programme ,Rs1,400 crore has been disbursed to about 2.82 crore old age people, widows and disabled people
- The government is also providing medical insurance cover of Rs50 lakh per person to health workers fighting the coronavirus pandemic.
- Even for the workers working in the formal and informal establishments it has come up with many schemes.
- To support the rural economy Government have increased wages provided in MGNERGA
- Under the PM-KISAN scheme, the finance ministry said that over 6 crore farmers have been benefited amid the lockdown. Rs 13,855 crore have gone towards payment of the first instalment of PM-KISAN.
- Vaccination have started on massive scale. The government recently introduced the Aarogya Setu mobile application to educate citizens about novel coronavirus and help them make informed decisions amid the crisis..
- The use of digital technology was encouraged by the government like online school education, zoom application for meeting purpose.
- Imposed penalty for non-compliance with police and healthcare staff.
- The government said it plans to set up a chain of 20 lakh retail shops called ‘Suraksha Stores’ across India which will provide daily essentials to citizens while maintaining stringent safety norms, news agency.
In conclusion, the combined steps of Government and citizens are required to control the crises. We must all fight together as prevention is better than cure.