IMPACT OF COVID-19 ON INDIA’S ECONOMY

The economy affected a lot by this pandemic because all the economic works are shut but now every country started thinking that they should start economic activities and put less restrictions due to this pandemic many people lost their job they don’t have money to fulfill their daily needs .the report by IMF said that the economy will go in negative because of this heavy crisis due to which the growth rate of GDP decreases so that poverty in our country increases due to pandemic the demand for natural gas and oil decreases the most affected sectors are travel and tourism loss of 8500 crore done because of the restrictions imposed on foreign tourist also entertainment industry also facing loss of 250 crore between march and may because they have postpone all their shooting plans the automotive industry also affected a lot by this pandemic because the materials which is required for manufacturing are imported from china and Germany so the production rate is decreases. FMCG [fast moving consumer goods ] majority of supply chain is disrupted production is not smooth because of the lower demand. Factories themselves couldn’t work in full capacity the pharma sector is working smoothly because the demand increases as we all aware that India started making a lot of masks and sanitizers so the demand increases also India exports a lot of pharma products but the raw materials coming from china so this is also a big problem .So the government decided take several steps for maintaining the economic growth and announced some packages the first one i discussed here is the package which is given to MSMEs as we all aware that the MSME are more affected by this lock down due to which most of the enterprises shut for forever and people lost their job so the government decided to help them so those msmes who have taken loan of 25 crore the government decided to give collateral free loan the tenure of the loan is 4 years. this is one of the step taken by government so this will help the companies to start their company again and started working on it and also there are so many other decisions taken by government and also the government focusing on making India self -reliant because if people use more products of our country then the demand increases so the rate of production is also increases so more employment are generated the standard of living increases so it is beneficial for our country as well as other countries. so we can say that the economy is not going well in coming months but after sometime it will become well if everything goes in favor . this lock down gives a lot of negative effect to our GDP growth now people realize that they have to live with corona virus because they don’t know how much time require for making vaccine so they started living life with taking care of themselves.it is very much important for everyone that they follow every guidelines and take care of themselves and do their work carefully.

Categories: Education

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