The impact of the 2019-2020 coronavirus pandemic has been hugely disruptive globally.
India is facing an unprecedented economic crisis due to the outbreak.Indian GDP growth is already at decadal growth and this pandemic dent in economic output will bring more pain to workers and their wages.
ECONOMIC IMPACTS :
Although India may not slip into recession but India will face GDP growth tusnami due to this pandemic.
Rating agencies both global and domestic has reduced GDP growth forecast for this fiscal year.
Upto 53% of business in the country will be affected.
- Supply chain has been put under stress.
- Informal sector,daily wage workers,farmers who grow perishables goods are at more risk.
- Major hit industry such as aviation and tourism.
- Manufacturing sector has temporary suspended or reduced their operations.
- Auto industry,construction industry,fashion and retail industry is hit hard.
- Forex Gold reserves dip to 12 Billion as investors panicked and withdraw money.The rupee worsened against the Dollar. There has been fall in the export products.
Initiative Of Government
Government has worked on welfare and relief measures for various sector of economy as well as for the poor and needy. Finance minister has announced 1.7 trillion rupees stimulus package which includes free food grains and cooking gas to poor for three months and cash for women and olders.
Government has put restriction on expenditure and funds are used for fighting corona virus, salary has been cut by 30% of MP’s for one year.
Indian Central bank joined the fight with sharp rate cuts to 4.4%, the lowest in at least 15 years. It also reduced the cash reserve ratio (CRR) maintained by the Indian banks for the first time in over seven years and many other steps are taken by RBI to mitigate the effect of corona virus.