Impact of COVID 19 on the Indian Economy
The impact of the coronavirus pandemic in India has had an impact on the Indian economy.Coronavirus had an impact not only on the Indian economy but also on the global economy.The Indian economy was affected by the economic growth slowdown, unemployment and poverty even before Covid-19, but in March 2020, the Indian economy came under the grip of Corona in a more vulnerable state.India had an impact in almost all sectors like tourism,GDP, service,education etc.In the first wave of Corona,there was a nationwide lockdown and due to which there was a migration of a lot of migrant population to their homes,due to which there was a decrease in the population working in the urban area, in the second wave, the lack of oxygen in the field of health is a proof of how India's economy has been affected during the Corona period.
Effect of Corona on Indian Economy – This virus started from China to enter India in March 2020. There was a nationwide lockdown from March 2020 to June 2020, due to which the Indian economy came to a standstill. From June 2020 to September 2020, there was a gradual relaxation due to which the economy started coming back on track. According to the Ministry of Statistics, India's growth rate in the fourth quarter of 2020 gdp was 3.1.According to an estimate of the International Monetary Fund, India's economy will shrink by -4.5.
Agriculture acts as a reed in India's economy, primary agricultural production and agricultural grains had a great influence during the time of Corona. Several state governments have already allowed free movement of fruits, vegetables, milk etc. but online food grocery platforms have had a huge impact due to vague restrictions on movement and vehicular movement. The average wage growth in the agriculture sector from November 2021 to March 2021 has come down to 2.9 percent from 8.5% in April to August 2020. There is a big response to the massive impact of COVID-19 on the Indian food sector as well as the larger economy.
Transport and Tourism
The contribution of transport and tourism to our GDP is about 2.4 percent and 9.2 percent respectively. After the first wave of Corona in tourism, there was a big jump in it, but the destruction of the second wave came back and India's annual GDP in this area was about 7%. During the second wave of transport, many areas were affected in a big way as people were afraid to step out of their homes.
The service sector was the backbone of India's economy in the last two years. The first wave lockdown was a new paradigm for the employees and they took time to work from home. After the first wave of lockdown, the workers got back into rhythm. But the conditions started to return as before and in the second wave disrupted them. Education sector was affected the most in the field of service. Apart from these, the health and police service sectors continued to work in their respective fields during the time of Corona.
GDP growth had fallen by 23.9% in response to the Centre's new notice lockdown. India's GDP fell by 7.3% in 2020-21. Here is the worst performance of the Indian economy in any year since independence. The Government of India released the 2020-21 GDP figures. In which India's GDP has declined by 7.3%. Due to this, the lockdown was mainly due to the increase in the world economy and domestic consumption was the main reason for this.
Thus was the impact of the Covid-19 pandemic on the Indian economy. The Indian economy was slowing down a decade before the pandemic, as a result of which India's capacity to deal with the pandemic in March 2020 was severely undermined. After March 2020, the pandemic-induced economic crisis hit all economic sectors. Farmers in the agriculture sector faced broken supply chains, lack of market outlets, poor demand and falling produce prices. There was a huge loss of employment in this crisis. Short-term and long-run job losses demand that the packet is focused on job creation and aggregate demand growth, yet the financial allocation to the employment sector has increased only marginally. Even if the advanced capitalist economy has abandoned every mica of austerity responding to the pandemic.However, the prospects of an early revival in the Indian economy are being affected disappointingly.