The economic impact of the 2020 coronavirus pandemic in India has been largely disruptive. India’s growth in the fourth quarter of the fiscal year 2020 went down to 3.1% according to the Ministry of Statistics.The Chief Economic Adviser to the Government of India said that this drop is mainly due to the coronavirus pandemic effect on the Indian economy. Notably India had also been witnessing a pre-pandemic slowdown, and according to the World Bank, the current pandemic has “magnified pre existing risks to India’s economic outlook”.
Unemployment rose from 6.7% on 15 March to 26% on 19 April and then back down to prelockdown levels by mid-June.During the lockdown, an estimated 14 crore (140 million) people lost employment while salaries were cut for many others.”13 More than 45% of households across the nation have reported an income drop as compared to the previous. The Indian economy was expected to year. lose over $32,000 crore (US$4.5 billion) every day during the first 21-days of complete lockdown, which was declared following the coronavirus outbreak. Under complete lockdown, less than a quarter of India’s $2.8 trillion economic movement was functional.Up to 53% of businesses in the country were projected to be significantly affected. Supply chains have been put under stress with the lockdown restrictions in place; initially, there was a lack of clarity in streamlining what an “essential” is and what is not. 191 Those in the informal sectors and daily wage groups have been at the most risk. A large number of farmers around the country who grow perishables also faced uncertainty.
Major companies in India such as Larsen & Toubro, Bharat Forge, UltraTech Cement, Grasim Industries, Aditya Birla Group, BHEL and Tata Motors have temporarily suspended or significantly reduced operations. Young startups have been impacted as funding has fallen. Fast-moving consumer goods companies in the country have significantly reduced operations and are focusing on essentials. Stock markets in India posted their worst loses in history on 23 March 2020.However, on 25 March, one day after a complete 21-day lockdown was announced by the Prime Minister, SENSEX and NIFTY posted their biggest gains in 11 years.
The Government of India announced a variety of measures to tackle the situation, from food security and extra funds for healthcare and for the states, to sector related incentives and tax deadline extensions. On 26 March a poor were announced totalling over number of measures which would make available 374,000 crore (US$52 billion) to the country’s financial system. The World Bank and Asian Development Bank approved support to India to tackle the coronavirus pandemic. Number of economic relief measures for the 170,000 crore (US$24 billion).
The next day the Reserve Bank of India also announced a number of measures which would make available 374,000 crore (US$52 billion) to the country’s financial system. The World Bank and Asian Development Bank approved support to India to tackle the coronavirus pandemic.
India’s economy is expected to grow 1.5 per cent to 2.8 per cent in the
2020-21 fiscal which started on April 1, the World Bank said in its South Asia.Economic Focus report. It estimated.India will grow 4.8 per cent to 5 per cent in the 2019-20 fiscal that ended on March 31.
GDP growth rate in previous years:-
[1].2018:- 6.12%
[2].2019:-4.23%
[3].2020:-1.87
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