Abstract:
How did the health adversity translate to economic adversity?Why did the spread of corona virus bring the global and local economy downward?And the reason the spread of corona virus encouraged social distancing which led to the shutdown of corporate offices, financial. markets, business ,Universities and events.So, this lockdown period in india has brought the economy to its knees.The covid-19 pandemic in india has brought lot of changes in short period of time.
Introduction:
The Indian economy expecting that there is lose over ₹ 32,000 crore($4.5 billion) every day during the first 21 days of complete lockdown which took place due to corona virus effect.A large number of farmers around the country who grow crops facing the uncertainty.On 14 April 2020, the prime minister extended lock down till 3 may .So the RBI Governor declared to control the economic impact of pandemic including ₹50,000 crore special finance to SIDBI ,NHB.The World Bank has approved support to india to handle the coronavirus pandemic.Some of the government actions took place for the welfare of people in lockdown period.They are
• Economic Response Task Force was announced by Prime Minister Narendra Modi on 19 March 2020. The task was controlled by finance minister Nirmala Sitharaman. The Ministry of Finance immediately started consultations with the RBI and ministries to take stock of most affected sectors like aviation, hospitality.
• Various state governments have announced financial assistance for the poor in the unorganised sector.An example Uttar Pradesh government decided to give direct money transfer of ₹1000 to all wage labourers in the state. Poverty Line families will be provided rations (including rice, wheat, mustard oil, sugar) free of cost.
• Prime Minister announced a ₹15,000 crore (US$2.1 billion) fund for the healthcare sector on 24 march.
• Reserve Bank of India (RBI) Governor Shaktikanta Das made a number of announcements including EMIs being put on hold for three months and reducing Repo Rates.
• On 14 April at 10 am the Prime Minister made a public speech in which he announced the extension of the nationwide lockdown.
• Due to extension the Ministry Of Home Affairs declared that agricultural and horticultural will remain functional.
• India goes into its third stage of lockdown. The country has been divided into various zones (green, orange, red, containment) and as per the zone the economy .
India changed its foreign direct investment (FDI) policy to curb “‘opportunistic takeovers’’ of companies due to the current situation . With the fall in global share prices, there is a thought that China may take advantage of the situation which leads to hard takeovers.
The Economic impact over various sectors:
1. Commercial establishment: All the restaurants remained close because of covid-19 .There will be ban on eating in restaurants but food delivery will continue. The essentials like grocery, vegetable and pharmacy shops will remain opened.Only not more than 2 in a family are allowed .The malls, offices everything was closed.
2. Education:Government declared a countrywide lock-down of schools and colleges.CBSE released guidelines for examination centres.1metre of distance should be maintained between the students .JEE main examinations were postponed .Class 1 to 9 are promoted to next classes.SSC exams were postponed. Engineering exams are planning to held on July month.Theres a lot of confusion for conducting the exams. Recruitment exams like Civil Services main exam have also been postponed. Meanwhile academic activities are being maintained by schools and colleges through online classes, video lectures and government’s digital platforms.
3. Entertainment:Cinema halls were shutdown by most state governments . The International Indian Film Academy Awards, planned to take place on 27 March, was canceled.All film industries decided to stop production of films, TV shows and web series. Zee Anmol run by Zee TV will be available for two months free to all viewers in the country. This offer is for all DTH and cable networks.And those were declared by Indian Broadcasting Foundation (IBF). All video streaming services, jointly decided to offer only SD quality content on cellular networks.
4. Stock Markets: Stock markets in India post worst losses in history.[16] SENSEX fell 4000 points (13.15%) and NSE NIFTY fell 1150 points (12.98%).[122] However, on 25 March, one day after a complete 21-day lock-down was announced by the Prime Minister, SENSEX posted its biggest gains in 11 years, adding a value of ₹4.7 lakh crore (US$66 billion) crore for investors.
5. Agriculture: Due to logistical problems farmers could not harvest the crop.An example Darjeeling tea based tea industry will see significant fall in revenue. New lockdown guidelines to reopen the economy and relax the lockdown, agricultural businesses such as dairy, tea, coffee and rubber plantations, as well as associated shops and industries, will reopen.
6. Manufacturing: iPhone producing companies in India have also suspended a majority of operations. Major companies in India such as Larsen and Toubro, Bharat Forge, UltraTech Cement, Grasim Industries, the fashion and retail wing of Aditya Birla Group, Tata Motors have temporarily suspended or significantly reduced operations in a number of manufacturing facilities and factories across the country.
7. E-Commerce:Amazon declared that there will be stop of non essential goods in India so that it can focus on essential needs. Walmart-owned Flipkart temporarily suspended some of its services on its e-commerce platform and will only be selling and distributing essentials. Telangana extended the lockdown to 7 May Zomato will not be allowed to function during this extension period.
8. Defence: The Department of Military Affairs has postponed all capital acquisitions until the coronavirus pandemic situation. No new major defence deals will be made in the beginning of the financial year 2020–21.
9. Sports: The 2020 ISSF World Cup, which was to commence on 15 March in New Delhi, was postponed. The Indian Open badminton tournament which was scheduled to be held in New Delhi was suspended . The All India Football Federation suspended all matches of I-League and I-League 2nd Division .
10. Transportation: The Government of India announced that no international flights will be allowed to land in India. The union government announced the suspension of all domestic flights in the country starting 25 March. Indian Railways announced the cancellation of 3,700 trains across the country in view of janata curfew. On 22 March, the union government cancelled all train services in the country baring goods trains, that is around 12,500 trains, and all non-essential passenger transport including interstate transport buses.
11. Unemployment: The coronavirus lockdown in India has left tens of millions of migrant workers unemployed.
12. Historical buildings: According to Union Tourism Minister Prahlad Patel the Taj Mahal, Red Fort and Qutub Minar and all the National Monuments and Museums under the Archaeological Department of India will remain closed till 31 March.The Statue of Unity will be closed.
References:
• Research, Centre for Policy. “Podcast: How has India’s lockdown impacted unemployment rates and income levels
• https://www.thehindubusinessline.com/economy/covid-19-lockdown-estimated-to-cost-india-45-billion-a-day-acuit-ratings/article31235264.ece
• https://indianexpress.com/article/business/market/bse-sensex-nse-nifty-stock-market-live-updates-coronavirus-global-markets-6327415/
• https://www.business-standard.com/article/current-affairs/covid-19-govt-allows-transportation-of-all-essential-non-essential-goods-120033000055_1.html
• https://www.cnn.com/2020/03/23/asia/coronavirus-covid-19-update-india-intl-hnk/index.html
• https://www.livemint.com/news/india/pm-modi-announces-extension-of-lockdown-till-3-may-11586839412073.html
Conclusion:The impact on economy is high due to lockdown but the person life is protected from the social distancing in form of shutdown of all sectors.However many government actions are taken place in view of people’s problems.The government is further proceeding everything in a perfect plan.The economy impact will be set back in a few years by taking the guidelines on everything.