Impact of CORONA on economy – By Sumeeth

The coronavirus outbreak has infected people in more than 185 countries. Its spread caused the business to get down its position.

You all might be thinking how possibly Corona Virus is impacting the Indian Economy?

Despite being the world’s second-most populous country, India managed to limit the spread of Coronavirus.

Due to the Nizamuddin’s incident, the total cases in India reached to 5734 as on April 9, 2020. We can’t ignore the fact that since the outbreak of Corona-virus, every economy in the world is experiencing economic slowdown, supply chain disruption and trade commodities difficulties.

The GDP of India is expected to go down by 1.6% by 2021. Most of the cities in the world are in a lock-down mode. Due to the shutdown of the operation and a steep decline in demand, the global GDP is expected to suffer a decline of around – 0.5%.

 

Impact of corona on INDIAN ECONOMY:

India is on the verge of an unparalleled economic cataclysm as the humanitarian disaster from the Covid-19 pandemic unfolds.

Due to this lockdown,

  • the public is panic-buying which affects the supply-demand in the economy adversely.
  • The dramatic curtailment of production and distribution means that if this situation isn’t tackled soon, a shortage will soon appear.
  • Small local entrepreneurs will be wiped out from the economic race as they won’t be able to cover their Cost which will result in an overall loss.
  • The banking sector is already grappling with a bad debts crisis and insurance companies may see their business becoming nonviable.

This situation requires planning and coordination between the centre and the state government. So far, Economic issues have not been adequately addressed by the Government. This is an alarming situation.

 

 

economy
Photo by Markus Spiske on Unsplash

 

Covid-19 effects on business in India

Complete India has been locked from 25th March and it might continue till May first week also.

Due to this lock-down action in India,

  • All the business operation are shutter down and no transport – No shops – All mall theatre are closed.
  • People are sitting at home due to COVID-19. Then how possible to expect growth in India economy, Day 2-day economy is going down due to corona diseases.
  • Even India lock might extend to May month also, Its huge fall down in India economy.

 

Coronavirus impact on jobs:

 

When it comes to the job,

Many people will lose their jobs due to COVID-19 effect. As we all know, India lock-down start date is 25th March 2020 and after 18 days also no more words to India lock-down end date.

Day to day more positive corona cases getting confirm and India health department is moving with more corona check-up units to identify the people who have diseases.

So no more thinking about the lockdown end date and it can continue up-to 30th April or May also. All depending on the growth of diseases in the country, In-This scenario there is no operations are running in India. All small companies or Big companies are closed now for more than a month by paying salary.

Here many companies are paying 50% of the salary and few more 30% of the salary due to this corona effect, Meanwhile companies are taking the work through online. Here Employee has to work from home through online, But full salary will not be credited due to corona.

 

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