Impact Of Covid 19 On Indian Economy And The Way Forward

There is a high likelihood, we are months away from a semblance of normalcy owing to the mutating virus, that has been bringing wave upon wave of attacks, each deadlier than the other.

- Manjula Wadhwa

Using the World Bank's headline projections about India, of 3.2% contraction in 2020-21 and 3.1% growth in 2021-22, it becomes easier for us to calculate the projected growth for different sectors of the economy.

This comes to a 7.2% contraction in 2020-21 and 1.4% growth in 2021-22. Since the big jolt given by pandemic Covid-19 in March 2020, India has been facing a huge decline in government revenues and growth of the income.

Actually, the economic impact of COVID-19 is highly disturbing. No one has been spared of its ill effects. Economies of about 100 plus countries have been destroyed out of which some of them have asked for monetary help from IMF. ADB etc. Businesses across the world namely hospitality, entertainment, aviation etc., have seen a major negative impact. Various sports events such as IPL and Olympics have been postponed. Schools and colleges have been closed. The virus has also disrupted the functioning of various online giants. Countries such as USA, UK, Italy, Spain, Brazil and India are suffering the most.

There is a big shift in the world economic market and the share market has witnessed crashes day by day. Factories, Restaurants, Pubs, Markets, Flights, Super Markets, Malls, Universities and Colleges etc. have been shut down for 2 quarters. Fear of corona virus is so heavy on the heads that People prefer to go out to buy the daily essentials The Organization for Economic Co-operation and Development (OECD) reveals that they have cut their expectation for global growth to 2.4% from 2.9%, and warns that it could fall as low as 1.5%.