The COVID-19 pandemic has impacted brutally over the Indian economy in just three months. The results in the past few days have been largely disruptive. The ministry of Statistics stated that the growth rate came down to 3.1 percent. Moksh Popli says that the announcements made in May for the economic support to the common man and businesses have to go a long way to help the people in surviving. At present, many cities, states, and districts are undergoing another phase of lockdowns. These partial phases of lockdown are slowing the economy and aiming towards signaling a deep recession.
Moksh Popli says the unemployment rose to 30% in April and within these three months, an estimated number of approx 140 million lost their employment or salaries are delayed. As the Government is helping the people by arranging food, better health care, and providing funds. Still, there are a huge number of people who are reporting income reduction, job drop, and at the same time, dealing with health issues as the number of active cases is increasing.
Staying in the lockdown is not the solution, says Moksh Popli. The different phases of lockdown in India and the unlock 2.0 had varying degrees of the opening on the economy. The RBI has announced measures to counter the economic impact of the pandemic. It includes special aid of Rs 50,000 crore to NABARD, SIDBI, and NHB. Even the government changed India’s foreign direct investment policy to defend the situation of companies. The overall economic package of Rs 20 lakh crore with the emphasis on AATMANIRBHAR Bharat is affecting the country’s growth at a big scale. The voice for Vocal for Local is inspiring everyone.
Between this tough time, several countries were able to fight in better ways and reduced the numbers of the infection. India has now turned to the top three in the rank of infected cases. The digits have reached more than 12 lakh. The experts say that the global economy is expected to shrink by over 3 percent this year. It will be the steepest slowdown since the great depression of 1930. It is believed that advanced markets have been hit harder, but they are supposed to grow by 6 percent in 2020.
The government’s revenue has been harshly affected, as the tax collection has gone down and they are finding ways to reduce its costs. The young startups have been impacted as funding has fallen, the loss of tourism industry is around 15,000 crore for March and April alone.
In the end, the economy is back on the track of recovery with the slow rate but willing to return. At the beginning of June with the unlock 1 various companies started making plans to re-open, the unemployment levels are back to pre-lockdown numbers. Even the e-commerce sector gained profits in between the tough times. India is recovering and showing notable developments in comparison to previous months. Moksh Popli believes that India is heading to an enduring position among the other global economies.