The Corona Pandemic Is Murdering The Indian Economy

Since the 30th of January, this year when the first case of COVID-19 appeared up, the infections became relentless. As it started to spread all over the country, becoming a pandemic, the State Governments started to shut down. Now, this pandemic is looking to have well-set roots in the country.
With more and more increasing cases, the economy of the country is breaking down ruthlessly. The country is in lockdown mode and this has forced thousands of industries to stay shut. It is indeed true that the Corona Virus pandemic is murdering the global economy. Any developing country like India is moving through a period of recession, which will be too hard to overcome.

Let us find out what losses the country has already passed through and what is yet to come.

What Was Already Bad Became Worse In These Months
The Indian economy was already dreading at the lowest point ever in the last twenty years. While employments started to reach a standstill, the economy was crumbling down into pieces. The pandemic acted like fuel and fanned the flames further. Growth of GDP was minimal and most of the public sector organisations started joining hands with the private ones.

It is very less likely that the Indian economy is going to evidence a big comeback shortly.

Take A Look And Evaluate The Losses In Details
The 21-day lockdown in the country issued by the Central Govt. of the country is going to hit hard. Approximately, there will be daily loss of over ₹32,000 crore, which is around US$4.5 billion. Almost around 55% of the businesses in the country are going to take a huge push backward. The aviation department is off and so are the railways and roadway transportations. This has brought a devastating pull in the growth of the economy.
The live events industry is going to face a loss of over ₹3,000 crore, which is around US$420 million.

Lack of clarity over what falls under ‘essential products’, is also barring the Supply Chain in many regions. This situation is going to hit the farmers as the perishable products are on the way of getting perished, staying in warehouses for weeks.

How The Stock Markets Are Faring?
Ups and downs are what the stock market in the country is faring. On March 23, the stock market faced the lowest mark as it recorded the worst hit in history. SENSEX fell behind losing 4000 points (around 13.15%) while the NSE NIFTY fell behind, losing 1150 points (around 12.98%).
However, it was surprising to a lot of economists how just after one day of the 21 days lockdown, SENSEX saw its biggest gain.

It was the biggest in the last 11 years, adding a staggering value of ₹4.7 lakh crore for the investors, which is around US$66 billion. Stability in the growth is very hard to expect in the coming days.

What about the GDP Growth Scenario?
From a report of BusinessToday, we get to expect that the situation is going to pose limited threats if it departs by mid-May. However, based on the current situation in the country, the future does not seem so. Coming to the other aspect, India can see a first-time negative growth in the GDP ever since the financial year of 1980 if the situation does not loosen. Reports hint that there will be as minute as a 2% increase in GDP by 2021.
If the lockdowns continue until May or June, disruptions are going to last longer. There will be more job losses and the impact will be tremendous on the economy.

Are There Positive Signs Out There?
In an interview with the Economic Times, the ex-governor of the RBI, Raghuram Rajan expects to see a reformed economy after this crisis ends. He also focused on saying that there is no financial emergency declaration coming anytime soon. But, the country is indeed going through a stage of the emergency economic situation in history.
Packing things up, it is not time to expect the economic situation to ease itself in the coming days. However, the impact depends on how faster or later the Corona Virus scene is going to leave.