HU 301a

MTE Evaluation Proposal

Category: Project

Title: Indian Financial Crisis- an aftermath of the Pandemic

Author(s): Sankalp Suman (2k18/EN/040) & Srajan Shivhare (2k18/EN/048)

Introduction
The Indian Economy is an organism rarely crafted and contained within the various paradigms of
market forces, with its larger chunk hinging upon agricultural activities, it is already more dependent
on forces of nature and not shrewdly calculated human projections. The Pandemic is a prime
example of the tsunami of unwarranted collapse of its various structures originating from this
natural debacle. The year 2020 has been marked with an especially darker ink for our economic
status, as even before the wide spread outbreak of the virus, most scholars of the subject were
arguing that the economy was in a tail spin situation, owing to the worsening financial liabilities and
burdens laid on the banking system, the almost plaguing corruption, the weak policy addressal
mechanism and the lack of any objective distribution of equity. All this was bound to create an
acute shortage of demand in the populace in general, it is determined that the Pandemic only
accelerated the inevitable. However, the burden of what is to come should not be taken off from the
shoulders of this virus, with such great impunity, the gruesome lockdown that has crippled the
“green shoots” that seemed to be rising out of the proclaimed ruins. A complete shut down of most
manufacturing and service-oriented sectors could in no way be achieved by the previous human
unfortunate feats alone.

This is a unique situation that will be studied by generations of economic enthusiasts, as such in-
operation of almost all human operations has seldom been a path of unanimous choosing by the
world governments. There are examples of course, of economies choosing to remain open or
relatively less shut down originating from carefully crafted bold administrative decision or by mere
need and they serve as a well allied comparison for these studies. The economy of Pakistan has been
in a shambolic state for a half a decade now and its shut down seemed to be a simple abetment of
collapse for the state, hence the relatively liberal shut down in a neighboring state, sharing many a
sociological and geographical indices with India, would serve as a prime example in this study. We
would also gander at the humbling status of Sweden as one of the more prominent economies
which chose a bolder path in the forefront of the crisis and hope to establish key sectors of study for
falling and twisting of our markets and determine areas where manure would work the best.
Objective
The objective of this project in simple terms is to re-construct the events leading to the tailspin
situation of the economy, factor in the unwarranted collapse brought by the nation-wide lockdown
and by extension, the pandemic, determine key areas that need re-construction or addressing in
order for the green shoots of the economy to rise again.

The project aims to study the economy in segmented manner to elucidate the reasons of its collapse
and ascertain mechanisms for its rejuvenation.

Methodology
The method of study employed would be an analysis-based format, with comparative studies of
mentioned economies to establish context.

The data used would largely pertain to government released data from statistical organizations, the
analysis ascertained by bodies like NITI Aayog along with the secondary data produced by
international organizations like the World Bank, the United Nations etc.

The tools used would be simple graphical and documentation tools, employed only to aid the idea
and for its better representation. In case of any tool beyond Microsoft Office is used in the
construction of the project, it shall be duly informed.

Conclusion
The status of the Indian economy is dwindling at various parameters however its relevance in the
global scenario remains far from being affected. A large population of the younger dynamic results in
an unfathomable work force, that if yield correctly can shoulder through any crisis of equal
magnitude. The problem lies in harnessing of these forces. The diminishing demand across the sub-
continent is a worrisome construct that needs proper policy addressal. There needs to be a strategic
policy in place for reforming the banking system and other enterprises in the financial sector along
with incessant stimulus in other sectors of the economy. The need to rethink our investment and
incentive mechanisms aiming for a greater social welfare can only arise from a careful analysis of the
operations of current industries and the distribution of its benefits to other sectors, For example,
there is no point in earning quick money by auctioning coal plants, only to pay thrice the amount in
medical bills five years down the line. The confusion between the inculcation of foreign investment
and local entrepreneurial support along with the current bureaucratic set up in the Indian Economic
Environment is also a matter requiring more attention than it is currently securing.

Hence a strategic analysis of the segments of the economy with both long term and short-term
objective, keeping the sociological, geo-political and environmental conditions at the forefront is not
just necessary but in fact crucial for the survival of an independent Indian economy that is not laden
by debt.