How has Covid-19 had an impact on the Indian economy?
There has been a high impact of the Covid-19 disease on the Indian economy.
But many sectors have been affected by the outbreak of this pandemic. They are aviation and tourism. These sectors have been the worst hit. The GDP has decreased because these sectors contribute 9% of the GDP. There are estimates that the aviation revenues will reduce by 1.56 billion dollars. Now, there is also a withdrawal of FPI’s from India which is amounting to 571.4 million USD.
But the worst affected have been the Medium and small enterprises. They have struggling to make the ends meet. And that’s why the major proportion of workers working in these businesses also left for their home towns. Apart from that, there have been losses of jobs for many Indians. It’s because of the layoffs done in bigger companies. But Covid 19 has also provided many opportunities for Indians. Due to this pandemic, many have lost faith in China. That’s why reforms are happening known as “Make in India”.
International Labor organisation has mentioned in its report that this Coronavirus pandemic is one of the worst crisis. This is the second biggest disaster in the world after World war 2. A lot of people are going to fall into penury because of this pandemic. 76.2% of the employees are going to be deeply affected by this pandemic. However, 195 million people are going to lose their jobs around the world. There are many in the low paid jobs whose impact on incomes is simply inexplicable.
The Supreme Court has asked for a report from the central government as to why there has been a mass migration of labourers to villages. There will be a high impact on the movement of workers due to coronavirus. Some of these workers might not return sooner. They are likely to find employment on their farms. There will also be a lot of inequality created by this pandemic. It can lead to discrimination in the long run due to the poor getting poor.