Recently, Prime Minister Narendra Modi on March 24, 2020 announced a nationwide lockdown for 21 days. He said that if Corona Virus will not be stopped in these 21 days then it will be the main reason for the downfall of the progress that Indian Economy has achieved over the last 21 years.
Corona Virus’ first case was reported in Wuhan on December 31, 2019. And from that day onwards its spread like a fire in a forest and has taken large areas under its control.
In this article, our prime objective will be to understand how Corona Virus will impact the whole Indian Economy? What will the future of India after this 21 days nationwide lockdown?
Impact of Corona Virus on India’s Imports and Exports
India is a large importer of goods and services from China, UAE, the U.S.A, and many other countries. But as many of these countries are under lockdown. So, a lot of goods and services will not be available,
Since the nationwide lockdown is in its place. So, we can expect that India’s export will be very very less.
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Impact of Corona Virus On Indian Economy and GDP
If we talk about China only they have seen a double-digit fall in their GDP growth which is around 10% in their first quarter.
Raghuram Rajan said that they believe that the U.S and other European countries facing the troll of Corona Virus will face similar double-digit falls in their GDP.
India’s GDP is continuously falling from past 1 year. With this lockdown, we can expect an 8-10% fall in the GDP of India. However, this fall may increase more if the 21-day nationwide lockdown will fail to fulfill its objective.
Impact of Corona Virus on Indian Rupee
The Indian rupee is facing a sharp decline and the INR to $ ratio has fallen to 76 rupees per dollar. And in the upcoming months there are chances that it may reach 80 rupees per dollar.
Impact of Corona on the Indian Stock Markets
The Indian Stock markets faced a sharp decline even before the lockdown was implemented in India.
On Monday (March 23, 2020), the stock market saw the largest single-day fall by 13.15%.
BSE ‘s Sensex fell down by 3,935 points or 13.15 % and closed at 25,981. On the other hand, NSE’s Nifty fell by 1,135.20 points or 12.98% and closed at 7,610.25.
Impact On Small, Medium and Large Scale Industries and their Workers
The small scale industries and their workers will be hardest hit by the 21-day lockdown. As in the past years, due to GST and many reforms that the government has come up with, these people were affected a lot. Moreover, many of these small industries will shut down after the lockdown is uplifted.
On the other hand the impact would be comparatively less on Medium and Large scale industries. This is because they will not be on the brink of shut down.
However, the workers will be affected to a large extent. Especially people working in the organized sector. According to the data released by the government of India, 40 crore people work in the unorganized sector. Due to the nationwide lockdown, these people will hardest hit. The casual worker, who work on a daily wage basis will face a problem to fulfill their basic needs. This will make them even more vulnerable to be a victim of the Corona Virus.
We hope that the Corona Outbreak will come to an end as soon as possible. However, until this problem gets resolved, we need to support the government to fight against Corona Virus.