IMPACT OF COVID-19 ON INDIAN ECONOMY

IMPACT OF COVID-19 ON INDIAN ECONOMY

"COVID-19" has turned out to be the global pandemic within a blink of our eyes. It is
one of the worst downfall ever faced in the history of the human era. Now it seems to be a
challenge to the entire human society worldwide. The small sapling which was formed in the
city of Wuhan has now drastically grown as a huge fat tree and it is spreading its roots all
over the world. Till today it has spread to about 212 countries and still counting. This sudden
outbreak has created a lot of imbalance in the world. World Health Organization (WHO)
have declared the virus as pandemic on March 11, WHO also said it was "deeply concerned
by the alarming level of spread and severity" of the outbreak.

This sudden outbreak has created a great impact on Indian economy. In global
perspective business across the globe are operating in fear of an impending collapse of a
global financial market. This present situation dubbed with sluggish economic growth in the
previous year, especially in developing countries like India, is leading to extremely volatile
market conditions.

It seems to me that in that past one month there is a major slowdown in Indian
economy. It is quite evident that there are tons of problems hitting the world of work from
multiple directions, companies are finding the difficult situation in this environment.

COVID-19 has disrupted the demand and supply chain across the country and with
this outbreak, it can be seen that the tourism, hospitality, aviation sectors and so on are
among the worst affected ones that are facing the maximum impact of the current crisis.
Moreover, we can find that there is declining footfall in shopping complexes and even
closing cinema theatres has affected the retail sector. As the consumption of the products or
service goes down, it leads to an impact on the work force.

In the financial market it has been estimated that Rs.10 lakh crore of market cap was
reportedly wiped off due to the fall of Sensex in the month of March 2020. The fall has
continued till the date

In the industrial sector there is a supply-side impact of shutting down of the factories,
resulted in delay in supply of goods from China which has affected a huge number of
manufacturing sectors which source their intermediate and final product requirements from
China. Some sectors like automobiles, pharmaceuticals, electronics, chemicals products, etc.
were impacted big time.

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 IMPACT OF COVID-19 ON INDIAN ECONOMY

Undoubtedly, with this Crisis impacting the business around the country, is resulting
in job loss, cutting down the salaries, giving pink slips to employees and opting for other cost
cutting.

In the ultimate analysis we can find a great impact on the Agricultural sector as well.
In India there is major population falling in this sector. Preliminary report shows that the non-
availability of a migrant labour is interrupting some harvesting activities. There is disruption
in supply chain because of a transportation problems and other issues.

Prices have declined for wheat, vegetables, grains and other crops. media reports
show that the closure of hotels, restaurants, shops, etc. during lockdown is already milk sales.
Meanwhile poultry farms have been badly affected due to mis-information particularly on
social media, that chickens are the carriers of COVID-19.

The pandemic has significantly disrupted the education sector as well. There is a
shutdown in schools and colleges which has put the students in terrible situation. In India
students attending Government schools have not only missed their learning opportunities but
also, they have no access to healthy meals which was provided by government during normal
days.

The bigger concern however, on everybody’s mind is the effect of disease on the
employment rate. Recent graduates in India are fearing withdrawal of job offers from
operations because of current situation

In this pandemic social media plays a major role, this platform is a great way for
individuals and communities to stay connected even while physically separated. Never have
we had more real-time information accessible at our fingertips in the face of a worldwide
event. Such information is helping us to be safe, providing us a better understanding of what
is occurring and how it might impact us. Yet social media can also spread false news finding
trusted sources of information regarding COVID-19 extremely important.

In conclusion, we understand that it has hugely made its impact on our Indian
economy, it is extreme situation where it takes time to heal and we should promote ourselves
to be more self-resilience as it was quoted by our present Prime Minister Mr. Narendra Modi.
I wish everything would soon have an end and we will be leading back our normal life.

Stay Safe, Stay Home.

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 IMPACT OF COVID-19 ON INDIAN ECONOMY

Name - Neha. U. Chougale.

Mobile no. - 7022780050
Email - neha.c5929@gmail.com
Name of college - Govindram Seksaria Science College,
RPD. College Road, Tilakwadi, Belagavi.
Bank Name - State Bank of India, Patil Galli branch
A/c no. - 64155600039
IFSC Code - SBIN0040209

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