The present Article is written by Supreet Sharma, BBA LLB (Hons.) student from Alliance University, Bangalore, Karnataka under the Online Article Writing Competition organised by LeDroit India discussing about the impact of the pandemic on Indian Economy.
India was getting green lights from developing nation to developed nations but it was an unpredicted hit by a pandemic known as Covid-19. The entire world has been hit by a misfortune which is an outbreak of corona virus. As per the survey the virus gets trajectory due to which World Health Organisation guidelines has implemented as mandatory where the world was forced to shut down. Due to abandonment all rubric industries were in an incalculable burden where it also affected various sector of Indian economy.
The flare of Novel Coronavirus Disease has affected millions and trillions of people all over the world. Besides affecting human health, it has also affected the global business world, economic system and both international as well as interstate trade. The epicenter of this disease was recorded at Wuhan, China in December 2019, after which the WHO was acting as a watch dog and monitoring its hazardous activities but Mayday was called out as Public Health Emergency on 30th January 2020. Prior through the declaration the virus has been widespread throughout the globe and compelling the WHO to declare it as Pandemic on 11thMarch 2020. After the declarations it was mandatory to undergo immediate lockdown as to curb the spread of Covid-19.
The first case was reported in Kerala on 30thJanuary 2020. As we are aware that India is massively populace nation so the government has decided to undergo national lockdown on 24th March 2020. Mumbai, the economic capital was drastically hit as a thunderstorm. Henceforth there are other states too which play a vital role in boosting the Indian economy was also under an ambush. Thus, pandemic has created an hue and cry in socio-economic disruption by affecting development.
Impact of Pandemic on Indian Economy:
Several industries are bound to confine their business as per the government time frame as relaxation in order to run their industries so that the essential commodities of the people are accomplished. Majority of industries act as drivers of Indian economy but it is a setback as various sectors are affected by Covid-19.
Primary Sector: This sector comes across with the extraction and production of raw materials. It contributes 43.21% in terms of employment and 16.1% in terms of Indian GDP. This includes Agriculture Industry and Mining Industry.
Secondary Sector: This sector comes across with the production and distribution of finished products. Even the construction companies come under the ambit as they assist both primary and service sectors. It contributes 24.89% in terms of employment and 29.6% in terms of Indian GDP. These sectors generally incudes manufacturing industries, automobile industries, textile and apparel industry, pharmaceutical and chemical industries, electronic industry, electric power industries and construction industry.
The Pharmaceutical and Chemical Industries has contributed trivial amount in terms of GDP during this hue and cry. As India has restricted the import of commodities from China, these sectors are facing a scarcity of goods in order to bounce back to their production. The ban was implemented in a short notice that none of these industries were able to explore for any other alternative for their raw material.
Service Sector: This sector is providing service to the people in terms of tourism, transportation, healthcare, IT segment, banking, media and entertainment and retail Industry. It contributes 31.9% in terms of employment and 54.3% in terms of Indian GDP. Most of the industries have been affected due to implementation of lockdown, which restricts the movement of people and in other side the health industry which is at it pinnacle has faced the crisis during the time of demand.
The upcoming policy which is adopted by majority of the nation to ban the product i.e, produced in China is a boon for India. As most of the nation word wide had decided to ban the china product, India has an opportunity to attract most of the industries throughout the globe and permitting them to invent, invest and start their industries which not only will boost the employment but also play a vital role in stabilising the Indian economy in post pandemic time by bringing various new business endeavors and strategies to uplift the economy.
- Shortage of healthcare facility and infrastructure.
- Major people suffering from COVID-19 are the ones who have past history associated with diabetes, hypertension and so on.
- Lack of awareness.
- Lack of resources supply chain distortions.
Suggestions and Recommendations:
- India is second largest country in terms of population (with an average age of 29 yrs). With the help of youth population India can provide a huge workforce for the upcoming foreign industries.
- Various policies should be implemented by the government to attract the foreign investors.
- There must be an encouragement in liquidity and consumer confidence, the Government of India should provide a pay roll tax holiday to support their demand.
- Various banking sector must be provided for the financial support to the new upcoming business ventures.
- Post-pandemic India must focus on “Made in India” or “aatm nirbhar bharat” tag to be used so that not only it will stabilise the economy but also boost to overcome or to bounce back the losses that nation has suffered due to Pandemic.
The outbreak has brought emerging issue for the Indian economy which causes severe disruptive impact over both demand and supply side which has the potential to thwart India’s growth. The smash on the Indian economy could be significant if the virus continues to penetrate the country which will have a longer lasting effect. Thus, post pandemic India can utilise this opportunity to become self-dependent and attract foreign investors and companies. To set up an Economic Task Force to combat the emerging issue and it must be responsibility of every individual from government, business personnel, investors, workers and the common people for collective action to fight this war. Countries needs to be revive hence people needs to be united in this pandemic.