Indian Economy During COVID-19
Let’s talk about the most spoke topic of today… Indian Economy During lockdown.
Not only in India but everywhere it caused a huge disaster, mismanaged everyone’s life and demolished many of the houses. People and our government both are fighting with the situation with all they have.
We are fighting for our lives and our Government is also fighting for the same reason, i.e. to save our lives.
So let’s know how this virus not only killed people but also our economy.
Want to know what main earning of government was?
WE, yes we were the main earning basis for them. The taxes we pay, the exportation of our country’s consignments we used to do. That was the main earning but, in order to save us from this pandemic, our government took huge steps of locking us into our own houses, commonly said as lockdown Right?
WHAT IS GDP?
It stands for gross domestic product.
When it comes to talking about our Indian economy what does the first thing comes to your mind?
GDP Right? You might have heard that word commonly many-a-times but do you know what actually it is?
It is the market value that our country earns through the production within the Indian border in a given time period.
This is the GDP growth of India before covid-19.
International monetary funds say that the Indian economy will be the worst hit by Covid-19 pandemic. Before March 2020, it is predicted that there is 2%growth for a year in GDP.
|Year||GDP Growth (%)||Annual Change|
How will it impact economy of India?
Well to know this you need to go throught the article and know how it impact economy.
We all know that most of the electronic importation is done from China.
Electronic sellers are worried about how will next couple of weeks go because of the covid-19 impact.
The fresh supply of inventory became uncertain as a result there will be a shortage for the raw material required for the production in the market.
Supply disruptions are observed due to covid-19.
Whole sale markets
Household markets like Sadder Bazaar were flooded with the Chinese goods and product but now it is suffering at crises.
TV and smartphones used up to 85% of Chinese components are hit strong. Mobile displays, Open cell TV panels, open circuit ports, and memory chips were all imported from China. Even the products that could be made locally were bought from china because of its cheaper rates.
All companies are going to increase prices between 3-5%.
It was usually imported from china has increased its price by 40%.They have appealed the finance minister to increase the prices of medicine and airlift medicines from China.
Paracetamol is the most common medicine for fever and is taken by almost everyone when sick.
Even the traders are getting it at higher rates so as a result graduation will increase as a price.
Since the exportation is at higher rates will result in in selling of medicines at more higher rates.
Event all the other medical equipments that will be required afterward for the treatment of people are imported from china.
Do you know who is most affective because of Covid-19?
They labour work whole day and earn accordingly but because of this breakdown they are not getting any projects to work upon.
The routine of people is broken down and as a result labour is suffering more in this pandemic.
With the labor, transporter is attached and with the transporter loading and unloading persons, this is causing an affect on them and ultimately exports will be affected.
As there will be no one for the exportation dealing.
President of Indian Export Organization, SK Saraf said that flourishing cotton export is not taking place now.
We also used to do fabric export in China which also is not happening.
Even the textile industry is suffering. Every single person thought that it would be for some time but now we are in for a long haul.Exports are decreasing with the passing time and soon there will be a shortage of budget which will impact people lives.
The export of raw cotton in India has decreased from 200-300Rs because of no demand from China.
China is not demanding for any fabric right now. Economy of every county is disturbed. And since because they all were dependent on each other, all are facing the disaster.
Prof Biswajit Dhar, The Trade Analyst said that Government and Industry should talk to each other
And find vein point to facilitate this all.
RBI, Moody and Goldman Sachs
Even RBI has refused to give growth projections.
Moody investor service has slashed India’s growth to 2.5% from 5.3% for 2020.
Goldman Sachs has cut India’s real GDP from 3.3% to 1.6%.
Will India be able to overcome the crises? Is a big question now.
It is said that this GDP rates will reduce more with further increase of lockdown.
After a research I got these7 points to tell you about. This covid-19 has really done a lot of disaster everywhere. This has result in the decrease of GDP and totally disturbed all import and export sector of India. Hope this information was useful to you.
By:- Sakshi Mishra