Covid-19 has not only global pandemic but has also resulted in Indian economic crisis. We have seen significant reduction in income of the people, unemployment is at rise, manufacturing industry is slumping , GDP is contracting. Read on this blog to know the consequences on Indian economy due Covid-19.
Contraction of GDP
GDP of a country in a more simple way is known all around the income of a country. GDP in India has contracted by 7.3% in the year 2020-21 which is around Rs. 10 lakh crore damage in a year. This much contraction has not happened since independence of India. Some of this downfall of GDP might never be recovered . There is a prediction that it will further contract by 4% to 5% by the end of this year.
Unfolding Crisis in Export and Import
Due to Covid-19 there is lockdown in India because of which production of lots of companies has stopped. That's why India’s export rate has fallen down by 36.65% till April 2020. There is a lockdown all over the world and transportation between countries has stopped due to which the import rate has fallen down by 46.36%. Manufacturers in India are at great loss. They are able to manufacture because they are not able to find material required to produce goods. If somehow they are able to manufacture then people don't have money to buy it.
Fluctuating Stock Market
Participants and non-participants are equally baffled by the market's resilience to Covid 2.0. In the last one month, the Nifty has gained about 6%. “While this second wave is expected to impact the country’s economic recovery in the short term, we expect the economy to bounce back as the government accelerates its vaccine rollout and lockdowns are getting lifted,” investment firm Franklin Templeton wrote on Tuesday.
Gains from Pandemic
Let's explore some of the sectors that are positively impacted despite pandemic.
Rise of E-commerce
Due to lockdown many people have started buying stuff online instead of going and buying it. Due to this there has been big growth in the e-commerce industry. E-commerce capability is no longer just limited to traditional websites; lots of retail shops have also come online . Now anything anyone wants to buy is just a touch away. If the same amount of growth keeps happening then in 4 year e-commerce will grow by 84% . As people have started buying goods online payment are also made online only due which online payment companies are on the rises
Hike Of Health Care Sector
In this pandemic one of the important sectors is the health care sector and salute to their hard work. But if we look with an economical perspective the health care sector has raised more than any sector could ever rise . All beds are occupied in every hospital and some private hospitals are charging very heavily. Pharmaceutical companies are on hike turnover of pharmaceuticals is boosted upto 1.29 lakh crore. Not only big pharma companies but local medical stores' income has also increased .
We have to understand one thing that no one knew about covid nobody knew how to deal with it . But we have still survived till now . And the only way to survive in this condition is by staying together .
We Stand Together, We Fight Together
In this blog we have seen how COVID has affected our Indian economy. I have tried to cover as many sectors as possible and if you think that I missed to write about some sectors, then do comment below. Also you can suggest to me about what topic I should write next.