Humanities for Engineers

Project Report
(January 2021 – June 2021)

On

Covid-19 and the Second Wave’s Impact on the Social

and Economical Pillars of Society in India
Submitted by:

Yashasvi Mittal 101701029

Rishabh Ranade 101701019

Of CHE-2
Submitted to:
Mrs. Simpi Verma

DEPARTMENT OF HUMANITIES AND SOCIAL SCIENCES

THAPAR INSTITUTE OF ENGINEERING & TECHNOLOGY,

(Deemed to be University)
PATIALA, 147004, PANJAB, INDIA

January, 2021
 Acknowledgements

We are extremely fortunate to have had a lot of guidance and assistance from many individuals

and organizations in conceptualizing our project. Whatever we have done is only due to their

kind support and we would not forget to thank them.

We express our gratitude to our mentor Mrs. Simpy Verma who has, through her vast experience

and knowledge, been able to guide us, both ably and successfully towards pursuing our project.

We would like to acknowledge the cooperation of various other faculty members of the

university who helped us in proceeding towards this project. We are deeply thankful to our

parents and other non-teaching staff members of the university who helped us at various levels

on the course of preparation of our project.

 Abstract

As a result of the emergence of coronavirus disease 2019 (COVID-19) outbreak caused by

severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2) infection in the Chinese city of

Wuhan, a situation of socio-economic crisis and profound Socio-psychological distress rapidly

occurred worldwide. Various Socio-psychological problems and important consequences in

terms of mental health including stress, anxiety, depression, frustration, uncertainty during an

entire year of COVID-19 have been emerging progressively. On the economic front, most

nations of the world had put weeks of lockdowns and/or curfews, restrictions on the movement

of people which had drastically affected businesses and further led to a fall in GDP growth of

individual countries but now we shall rediscover the recoveries that have been made. This work

aimed to comprehensively review the current literature about the impact of COVID-19 infection

on an individual’s mental health as well as the condition of the economy, in general. In addition

to the discussion of how the world has found a way to work around this difficult situation, the

paper also contains a survey to understand the financial and mental situation of people from a

wide demographic range in India. The paper concludes with appropriate policy suggestions to

reverse the adverse effects created by the pandemic in a gradual manner.

 TABLE OF CONTENTS

Name of the Chapters Page No

ACKNOWLEDGEMENTS

ABSTRACT

Chapter 1: INTRODUCTION ………………………………………………………....…... 1

1.1. Research Problem ……………………………………………………………….. 1

1.2. Purpose of the Study …………………………………………………………….. 1

1.3. Rationale ……………………………………………………………………...…. 4

1.4. Literature Review ………………………………………………………………... 5

1.5. Objectives of the Research ………………….…………………………………... 11

Chapter 2: METHODS ………………………...…..………………………………………. 13

2.1. Methodology ………..…………………………………………………………… 13

2.2. Data Analysis …………………………….……………………………………… 13

Chapter 3: RESULTS AND DISCUSSIONS ………………………….………………....... 23

REFERENCES ……………………………...…………………………………….………… 30
 Chapter 1
INTRODUCTION

The aim of this report is to investigate and assess the financial and Socio-psychological impact

of the coronavirus outbreak on the population with the help of a novel survey. We further aim to

analyse how these effects vary as a function of many individual and community factors like age,

gender, socio-economic bracket, etc.

1.1 Research Problem

The recent Covid-19 pandemic has had significant social, financial and even psychological

effects on the population. The impact on Socio-psychological well-being of the most exposed

groups, including children, college students, and health workers, who are more likely to develop

post-traumatic stress disorder, anxiety, depression, and other symptoms of distress. Economies

have been hit hard world-wide and many employees have either lost their jobs or experienced

significant pay cuts due to lockdowns imposed by state governments, and those working from

home also experience higher and irregular work hours leading to mental and physical stress. It is

especially more difficult for labourers and other blue-collar workers to sustain themselves and

their families.

1.2 Purpose of the Study

At the present time there are over 154 Million cases of COVID-19 infections worldwide with 5

Million deaths and these numbers keep climbing day by day. Among these, India is currently

suffering the 2nd wave which has put India in a rather tough situation as isolation is not the only

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biggest social problem but a recent shortage of oxygen cylinders and Remdesevir has put the

ever growing number of corona victims through one of the most difficult phases of their lives

and suffering the death of loved ones has not been easy. As the health and human toll grows, the

economic damage is also evident and represents the largest economic shock the world has

experienced in decades. In India itself there was a 23.9 percent contraction in its GDP in 2020.

These downturns were expected to reverse as the years went by and 2021 should've been more

positive but considering our current scenario, years of progress toward development goals have

sent tens of millions of people back into extreme poverty with various socio-psychological

pressures.

All or most of these above mentioned problems are affecting all individuals everywhere and are

being experienced at such an immeasurable scale that it becomes almost impossible to quantify.

However, it is important at this stage to carefully and thoroughly study, assess and understand the

impacts of the coronavirus on the world so that governments, policy-makers and individuals are

better equipped to deal with the situation now and in the future too.

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The Covid-19 pandemic led to a prolonged exposure to stress. As a consequence, researchers

showed an increased interest in measuring social and community uneasiness in order to support

the population’s Socio-psychological problems. This increased attention might help in managing

the current situation and other possible epidemics and pandemics. The security measures adopted

in managing the pandemic had different consequences on individuals, according to the social role

invested. Some segments of the population seem to be more exposed to the risk of anxious,

depressive, and post-traumatic symptoms because they are more sensitive to stress.

Multiple lines of evidence indicate that the current pandemic has profound Socio-psychological

and social effects. The Socio-psychological sequelae of the pandemic will probably persist for

months and years to come. The COVID-19 pandemic is associated with distress, anxiety, fear of

contagion, depression and insomnia in the general population and among healthcare

professionals. Social isolation, anxiety, fear of contagion, uncertainty, chronic stress and

economic difficulties may lead to the development or exacerbation of depressive, anxiety,

substance use and other psychiatric disorders in vulnerable populations including individuals

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with pre-existing psychiatric disorders and people who reside in high COVID-19 prevalence

areas.

1.3 Rationale

The COVID-19 virus is unique among human coronaviruses since it has high transmissibility,

uncontrollable fatal deaths in high-risk age groups, and has the ability to cause huge social

disharmony and economic loss. The present scenario of increasing Covid-19 patients in

India, slow spread of the vaccine to our population and the current number of deaths per day

shows that our population seems to be susceptible to this virus. This study helps to assess

the knowledge and attitudes of youths towards the Covid-19 disease. This study helps to

find out the knowledge gaps among the people regarding the Covid-19 and the

misconceptions and superstitious beliefs prevailing in the society about it. This study will also

provide descriptive data which may be useful for the concerned authority and planning

institutions while preparing plans and programs to tackle the Covid-19 disease. Also, after this

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study people will be aware of adopting healthy lifestyles and can manage and prevent

complications.

1.4. Literature Review

Dubey, Souvik, P. Biswas, R. Ghosh, Subhankar Chatterjee, M. J. Dubey, S. Chatterjee,

Durjoy Lahiri and C. Lavie. “Psychosocial impact of COVID-19.” Diabetes & Metabolic

Syndrome 14 (2020): 779 - 788.

This research study details, the universal psychosocial impact by Disease (COVID-19), causing

mass hysteria, economic burden and financial losses. Mass fear of COVID-19, termed as “corona

phobia”, has generated a plethora of psychiatric manifestations across the different strata of the

society. So, this review has been undertaken to define psychosocial impact of COVID-19.

Methods: Pubmed and GoogleScholar are searched with the following key terms- “COVID-19”,

“SARSCoV2”, “Pandemic”, “Psychology”, “Psychosocial”, “Psychitry”, “marginalized”,

“telemedicine”, “mental health”, “quarantine”, “infodemic”, “social media” and” “internet”. Few

news paper reports related to COVID-19 and psychosocial impacts have also been added as per

context. The results laid down by this paper conclude that the disease itself multiplied by forced

quarantine to combat COVID-19 applied by nationwide lockdowns can produce acute panic,

anxiety, obsessive behaviors, hoarding, paranoia, and depression, and post-traumatic stress

disorder (PTSD) in the long run. These have been fueled by an “infodemic” spread via different

platforms of social media. Outbursts of racism, stigmatization, and xenophobia against particular

communities are also being widely reported. Nevertheless, frontline healthcare workers are at

higher-risk of contracting the disease as well as experiencing adverse Socio-psychological

outcomes in form of burnout, anxiety, fear of transmitting infection, feeling of incompatibility,

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depression, increased substance-dependence, and PTSD. Community-based mitigation programs

to combat COVID-19 will disrupt children’s usual lifestyle and may cause florid mental distress.

The psychosocial aspects of older people, their caregivers, psychiatric patients and marginalized

communities are affected by this pandemic in different ways and need special attention. For

better dealing with these psychosocial issues of different strata of the society, psychosocial crisis

prevention and intervention models should be urgently developed by the government, health care

personnel and other stakeholders. Apt application of internet services, technology and social

media to curb both pandemic and infodemic needs to be instigated. Psychosocial preparedness by

setting up mental organizations specific for future pandemics is certainly necessary.

Giorgi, G., L. Lecca, F. Alessio, Georgia Libera Finstad, Giorgia Bondanini, L. G. Lulli, G.

Arcangeli and N. Mucci. “COVID-19-Related Mental Health Effects in the Workplace: A

Narrative Review.” International Journal of Environmental Research and Public Health 17

(2020):

This paper dives deep into the core issues of how the Coronavirus Disease 2019 (COVID-19)

pandemic has deeply altered social and working environments in several ways. Social distancing

policies, mandatory lockdowns, isolation periods, and anxiety of getting sick, along with the

suspension of productive activity, loss of income, and fear of the future, jointly influence the

mental health of citizens and workers. Workplace aspects can play a crucial role in moderating or

worsening mental health of people facing this pandemic scenario. The purpose of this literature

review is to deepen the Socio-psychological aspects linked to workplace factors, following the

epidemic rise of COVID-19, in order to address upcoming Socio-psychological critical issues in

the workplaces. We performed a literature search using Google Scholar, PubMed, and Scopus,

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selecting papers focusing on workers’ Socio-psychological problems that can be related to the

workplace during the pandemic. Thirty-five articles were included. Mental issues related to the

health emergency, such as anxiety, depression, post-traumatic stress disorder (PTSD), and sleep

disorders are more likely to affect healthcare workers, especially those on the frontline, migrant

workers, and workers in contact with the public. Job insecurity, long periods of isolation, and

uncertainty of the future worsen the Socio-psychological condition, especially in younger people

and in those with a higher educational background. Multiple organizational and work-related

interventions can mitigate this scenario, such as the improvement of workplace infrastructures,

the adoption of correct and shared anti-contagion measures, including regular personal protective

equipment (PPE) supply, and the implementation of resilience training programs. This review

sets the basis for a better understanding of the Socio-psychological conditions of workers during

the pandemic, integrating individual and social perspectives, and providing insight into possible

individual, social, and occupational approaches to this “Socio-psychological pandemic”.

Lahav, Y.. “Socio-psychological distress related to COVID-19 – The contribution of

continuous traumatic stress.” Journal of Affective Disorders 277 (2020):

This study is aimed to investigate these suppositions in the context of the ongoing shelling of

Israel from the Israel-Gaza border, which continues even amidst the COVID-19 crisis. Method:

An online survey was conducted among Israel's general population. The sample included 976

participants. Seven-hundred-and-ninety-three participants had been exposed to traumatic events,

with 255 participants reporting CTS. Trauma exposure, COVID-19-related stressors, and

Socio-psychological distress related to COVID-19 (anxiety, depression, and peritraumatic stress

symptoms) were assessed. Results: Most participants reported experiencing at least one

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psychiatric symptom related to COVID-19. Being younger, female, not in a relationship, having

a below-average income, being diagnosed with the disease, living alone during the outbreak,

having a close relative in a high-risk group, and negatively self-rating one's health status were

associated with elevated distress. Individuals who had been exposed to trauma, and to CTS in

particular, had elevated anxiety, depression, and peritraumatic stress symptoms compared to

individuals without such a history or to survivors of non-ongoing traumatic events. CTS

moderated the relations between PTSD symptoms, anxiety symptoms, and peritraumatic stress

symptoms, with significantly stronger relations found among individuals exposed to CTS.

Xiong, Jiaqi, Orly Lipsitz, Flora Nasri, L. M. Lui, H. Gill, Lee Phan, David Chen-Li, Michelle

Iacobucci, R. Ho, Amna Majeed and R. McIntyre. “Impact of COVID-19 pandemic on mental

health in the general population: A systematic review.” Journal of Affective Disorders 277

(2020): 55 - 64.

As a major virus outbreak in the 21st century, the Coronavirus disease 2019 (COVID-19)

pandemic has led to unprecedented hazards to mental health globally. While Socio-psychological

support is being provided to patients and healthcare workers, the general public's mental health

requires significant attention as well. This systematic review aims to synthesize extant literature

that reports on the effects of COVID-19 on Socio-psychological outcomes of the general

population and its associated risk factors. Methods: A systematic search was conducted on

PubMed, Embase, Medline, Web of Science, and Scopus from inception to 17 May 2020

following the PRISMA guidelines. A manual search on Google Scholar was performed to

identify additional relevant studies. Articles were selected based on the predetermined eligibility

criteria. Results: Relatively high rates of symptoms of anxiety (6.33% to 50.9%), depression

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(14.6% to 48.3%), posttraumatic stress disorder (7% to 53.8%), Socio-psychological distress

(34.43% to 38%), and stress (8.1% to 81.9%) are reported in the general population during the

COVID-19 pandemic in China, Spain, Italy, Iran, the US, Turkey, Nepal, and Denmark. Risk

factors associated with distress measures include female gender, younger age group (≤40 years),

presence of chronic/psychiatric illnesses, unemployment, student status, and frequent exposure to

social media/news concerning COVID-19. Limitations: A significant degree of heterogeneity

was noted across studies. Conclusions: The COVID-19 pandemic is associated with highly

significant levels of Socio-psychological distress that, in many cases, would meet the threshold

for clinical relevance. Mitigating the hazardous effects of COVID-19 on mental health is an

international public health priority.

Luo, M., Li-xia Guo, M. Yu, Wen-ying Jiang and H. Wang. “The Socio-psychological and

mental impact of coronavirus disease 2019 (COVID-19) on medical staff and general public –

A systematic review and meta-analysis.” Psychiatry Research 291 (2020): 113190 - 113190.

The coronavirus disease 2019 (COVID-19) pandemic has caused enormous Socio-psychological

impact worldwide. We conducted a systematic review and meta-analysis on the

Socio-psychological and mental impact of COVID-19 among healthcare workers, the general

population, and patients with higher COVID-19 risk published between 1 Nov 2019 to 25 May

2020. We conducted literature research using Embase, PubMed, Google scholar and WHO

COVID-19 databases. Among the initial search of 9207 studies, 62 studies with 162,639

participants from 17 countries were included in the review. The pooled prevalence of anxiety and

depression was 33% (95% confidence interval: 28%-38%) and 28% (23%-32%), respectively.

The prevalence of anxiety and depression was the highest among patients with pre-existing

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conditions and COVID-19 infection (56% [39%-73%] and 55% [48%- 62%]), and it was similar

between healthcare workers and the general public. Studies from China, Italy, Turkey, Spain and

Iran reported higher-than-pooled prevalence among healthcare workers and the general public.

Common risk factors included being women, being nurses, having lower socioeconomic status,

having high risks of contracting COVID-19, and social isolation. Protective factors included

having sufficient medical resources, up-to-date and accurate information, and taking

precautionary measures. In conclusion, Socio-psychological interventions targeting high-risk

populations with heavy Socio-psychological distress are in urgent need.

Title: Impact of COVID-19 on Financial Health in India: Managing Financial Health in

Challenging Times

Author/s: Sarika Mahajan

Year of Publication: 2020

India is at a crucial juncture in its fight against COVID-19 pandemic, which is inflicting

unprecedented health, economic, and financial stability challenges. The containment measures to

limit the spread of the virus are causing a dramatic decline in economic activities and

policymakers are worried about how to fight the virus and minimise its impact on the economy.

The main objective of this study is to explore financial health at individual level and at country

level in India. Many findings of this paper can be useful for India's policy makers to maintain the

parallel expansion of financial, fiscal and welfare measures to improve the financial health of

India and to strengthen the financial health of Individuals to fight against COVID-19.

In the present scenario, it is difficult to evaluate all the ill-effects COVID-19 on the individual

and the economy. But to meet basic requirements and to be ready for this upcoming uncertain

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time, it is very essential to assess the immediate financial health and to frame various policies

and strategies to deal with situations in the near period.

Title: Effect of COVID-19 on Economy in India: Some Reflections for Policy and Programme

Author/s: Monika Chaudhary, P. R. Sodani, Shankar Das

Year of Publication: 2020

The outbreak of COVID-19 brought social and economic life to a standstill. In this study the

focus is on assessing the impact on affected sectors, such as aviation, tourism, retail, capital

markets, MSMEs, oil, and the overall productivity loss and the socio-economic impact of labour

hours lost with an analysis of developmental policy and programme implications.

International and internal mobility is restricted, and the revenues generated by travel and

tourism, which contributes 9.2% of the GDP, will take a major toll on the GDP growth rate.

While lower oil prices will shrink the current account deficit, reverse capital flows will expand it.

Rupee is continuously depreciating.

However, there is an opportunity to participate in global supply chains as multinationals are

losing trust in China.

1.5. Objectives of the research

In this section of the chapter we will discuss the basic outline and objectives that this report tries

to address and solve so that a conclusive report can be formed. The following objectives have

been set for this report:

● To assess the effect pandemic has had on the economy of India and how it alters the

monetary decisions and conditions of a common man

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 ● To identify the impact of the pandemic over a group of people relating to a wide

socio-demographic range

● To discuss the negative impacts of the second wave of the virus and the over extended

lockdown periods in a mental and Socio-psychological sense.

● To discuss the vaccine distribution in India in tackling the pandemic

● To suggest policy changes, to improve the lives of the people, most affected.

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 Chapter 2
METHODS
2.1. Methodology

Data Collection

An anonymous survey was conducted to gather data on various topics ranging from basic

questions like the participants gender and age group to more specific questions related to

financial and Socio-psychological themes. The survey was designed using a Google Form, which

was then circulated using social media. All of the gathered responses were tabulated into a

Spreadsheet and subsequently analysed. A total of 44 people participated in the survey.

2.2. Data Analysis

The following are the questions present in the survey with infographics representing the

responses that the survey got. Each question’s responses have been analysed and interpreted.

The Survey:

What is your gender?

The survey covered people identifying as various different genders. This is essential for this

survey because it enables us to analyse the gender based impact of COVID-19.

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What is your age group?

People belonging to a wide strata of ages participated in our survey.

Are you employed? Is your job considered an essential service?

People who work in “Non Essential Services” had to stay at home throughout the lockdown,

while people who work in “Essential Services” had to go out and risk getting infected. A

completely different financial and mental impact can be expected because of the nature of the

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jobs of different people.

Have you or anyone that you know, lost their jobs due to COVID-19?

While most of the people were lucky enough to be able to continue working where they worked

before March, COVID 19 and the lockdown brought 48% of people to lose their jobs. Even after

paycuts a chunk of the population also face job losses which just shows that if you might not

have lost your job and still feel that the pandemic has affected your mental health in some way,

so just imagine what the people who have suffered pay cuts and job losses must be going

through. Showing just how real mental health problems in this pandemic can be.

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Did you experience pay cuts due to COVID-19?

Most employers did not cut the pay for their employees. But 34% had to. This financial stress

can lead to some people not being able to keep up with their monthly bills such as rent and food,

which is assessed in the following question. This shows that the certain population which faced

such cuts must have also had an impact on their psychological stability thus raising concern for

their mental health.

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Did your employer allow you to work from home?

While most employers were encouraged to allow people to work from home, 61% actually

implemented this policy. This can become a major cause of Socio-psychological stress for

individuals who are at high risk of severe illness from the virus and / or have individuals at high

risk in their households.

Was / would working from home be a financially better option for you?

Most people (55%) feel that working from home would be / is a financially better option for

them. Reduced travel costs and time savings could be attributed to this. But a considerable

amount of people did feel that it was better working from the office. This could be because many

individuals rely on the meals available in their office premises. There are many who also have to

pay more money for a faster and more reliable internet connection as working from home

involves intensive internet usage. It also leads to increased costs of electricity. But for those who

are living with their families, these additional costs might be minimal or non-existent.

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Did the lockdown affect your mental health?

82% of the people felt an impact on their mental health due to being stuck at home, with almost

no or just bare minimum movement outside. Only 18% of people did not feel affected by the

lockdown at all. This could be because these people are already used to staying at home for the

majority part all of the day.

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Do you feel that staying at home has caused an increased workload of household and

domestic chores?

Staying at home can lead to increased workload of household chores. This can include preparing

meals of individuals who stay alone, or helping out with household work such as cleaning. This

is reflected by the 61% vote on “Yes”. Many are unsure about this because maybe they are used

to more workloads (which may not be domestic) and hence this does not exactly feel like an

increase to them.

Have you previously been diagnosed with a mental health condition? If yes, please specify.

A large percentage (75%) of people have either not been tested or diagnosed with mental health

issues. Depression is prevalent in (14%) people, followed by the Anxiety(7%). In addition to the

mental health issues many people must have started facing this question serves as a reminder to

inculcate those people in the analysis who have already been facing mental health problems even

before the pandemic.

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How many hours per day have you spent outside your home ever since the new lockdown

has started?

Most of the people (77%) prefer to stay at home and hardly move out ( 0-1 hours/day ), over

14% do spend at least 2-4 hours outside daily. This indicates the fatigue of being locked up in

our houses for such a long time and the need to engage in real life social activity.

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Do you think the public consensus has changed to being less worried about the second wave

of pandemic?

The majority (64%) of participants do feel that over time, the public consensus has changed to

being less worried about the virus. But with daily new cases still being elevated,this is not a time

for complacency.

Have you been vaccinated with the first dose?

All adults in India are now eligible to be vaccinated,but still 55% of participants have not been

vaccinated with the first dose. This could be because several states say they don't have the doses

to carry out the exercise and also the centre said those who have had a Covid infection must wait

for three months before taking the vaccine jab.

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Have you lost someone close to you due to covid?

Coping with the dying and loss of a loved one can be a very emotional experience.It is that much

more difficult during a crisis like the COVID-19 outbreak,when even wakes and funerals have

been curtailed.While it is true that time heals painful wounds,there are immediate ways that you

can deal with the grief and adjust to your loss. By identifying and accepting your feelings,finding

comfort in friends and family ,and not being afraid to ask for help,can ease the grieving process.

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 Chapter 3
RESULTS AND DISCUSSION
Socio-psychological Impact

The second wave of the Covid-19 pandemic has affected the people’s interpersonal relationships

as covid cases and death were at an all time high. The lockdown was characterized by a different

organization of daily life, with an incrementation of time at home and a reduction of distance

through digital devices. This period was also seen as an evolution in the concept of empathy as

the infected cases and fatality rates were through the roof, producing new perspectives in the

study of this phenomenon according to sociological and neurological points of view. Indeed,

empathy—defined as the ability to understand and share the feelings of another—involves

several elements, such as: (a) social context and historical period of the individual, (b)

neurological mechanisms, and (c) Socio-psychological and behavioral responses to feelings of

others. The neuro-sociological perspective analyzes the mechanisms involved in the empathic

process, focusing on human communication and interpersonal relationships.

Specifically, in this historical period characterized by an increment in the man–machine

relationship, neurosociology could become one of the principal sciences for the study of human

relations and technology. “We live increasingly in a human–machine world. Anyone who doesn’t

understand this, and who is not struggling to adapt to the new environment—whether they like

that environment or not—is already being left behind. Adapting to the new, fast-changing,

technologically enhanced context is one of the major challenges of our times. And that certainly

goes for education”

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According to the above mentioned considerations, our suggestion consists in:

1. Primary prevention. Studying the impact of the second wave towards an at-risk

population to reduce symptoms related to stress and providing specific online

Socio-psychological counseling based on the target (students, medical staff, parents, and

teachers).

2. Secondary prevention. Overcoming the limitations of the human interaction based on

digital devices has already been achieved since 2020 but how to help the groups who

have been affected by this situation mentally is by: (1) developing new spaces of inter-

and intra social communication and new tools of support and Socio-psychological

treatment, reproducing the multisensory experienced during the face-to-face interaction

(Virtual Reality, holograms, serious game etc.); (2) training the next generation of

psychotherapists in managing online devices and in implementing their adaptive and

personal skills; and (3) sensitizing the general population on telepsychology and its

advantages.

3. The second wave is putting a huge strain on people’s mental wellbeing. Our longitudinal

study on the mental health effects of the pandemic shows that the burden of mental

distress is borne disproportionately by those with less economic security.

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In some cases, these are people facing considerable existing challenges, such as those with

existing mental health problems surviving in a destructive cycle of poverty and mental distress,

or those facing structural inequalities due to belonging to an ethnic minority group.

Unless action is taken to protect vulnerable people’s economic security and support them in

dealing with the resulting stress, mental health inequalities are likely to be exacerbated as the

pandemic and the ensuing economic downturn proceed.

Unlike a vaccine for fighting against covid, there will be no vaccine for these population’s

mental health impacts of the covid pandemic. Instead, we should urgently invest in meeting our

fundamental and complex human needs, starting from addressing the key issue of financial

inequality in our societies.

Financial Impact -

It has been seen that the aftermath of covid has the potential to cause widespread economic

disruption. Findings suggest that the 150 lockdown period has been disastrous for all

economies. The analysis of ten major stock markets worldwide shows that the effects of covid

has generated similar damage to the Financial Crisis of 2008. Which has had a 9-to-12-month

recovery phase considering the outcome of American elections of Joe Biden, the reconstruction

measures of the European economies and the decentralization of production from China.

Overall, the results showed that the increasing number of lockdown days, monetary policy

decisions and international travel restrictions imposed at the peak of the coronavirus crisis

severely affected the level of general economic activities and the opening, lowest and highest

stock prices of major stock market indices. On the other hand, the imposed restriction on internal

movement and fiscal policy spending had a positive impact on the level of economic activities

25
while the number of confirmed cases was positively related to the opening, highest and lowest

stock prices of major stock indices.

The implication of the findings is that fiscal policy spending appears to be more effective in

mitigating the effect of the pandemic than monetary policy decisions particularly because the

adoption of accommodative monetary policies by many central banks can exacerbate inflationary

pressures that could worsen macroeconomic stability in the short term.

Policy makers in many countries were under pressure to respond to the coronavirus outbreak. As

a result, many governments made fast policy decisions that had far-reaching positive and

negative effects on their respective economy – many countries plunged into a recession. Social

distancing policies and lockdown restrictions were imposed in many countries, and there have

been arguments that such social policies can trigger a recession. And in nations where the second

wave hit, the impact was rather more disastrous thus increasing government expenditure ten-fold.

Lawmakers in many countries supported an extended social distancing policy, damning the

consequences of social distancing on the economy. The recession that followed, which many

countries experienced, was a reflection of the difficult choice that policy makers had to make in

choosing whether to save the economy before saving the people or to save the people before

saving the economy; many countries chose the latter. There were criticisms that the policies were

too fast, premature or insufficient, and that the policies contradict one another in some areas, for

instance, the accommodative monetary policy encouraged economic agents to engage in

economic activities while the lockdowns and social-distancing (stay-at-home) policy prevented

economic activities from taking place. The vaccination drives that governments held were also a

26
necessary but a big budget project that various governments have implemented in their states.

India is on of those states but in the near future our research point out that there would probably

be a vaccine shortage for which the government would have to take drastic steps.

On the bright side, the coronavirus-induced public health crisis created an opportunity for many

governments to make lasting reforms in the public health sector. Countries like the UK and Spain

repaired their public health care system, and fixed other shortcomings in public infrastructure

such as the transition to online education, transportation systems and the disease detection

systems in public hospitals. Some governments also used the crisis and the second wave as an

opportunity to fix the economic system and the financial system with the planned federal

stimulus package and that is where India has lagged behind.

Conclusion

The coronavirus disease continues to spread across the world following a trajectory that is

difficult to predict with different strains of different regions. The health, humanitarian and

socio-economic policies adopted by countries will determine the speed and strength of the

recovery. A coordinated global effort is required to support countries that currently do not have

sufficient fiscal space to finance social policy, in particular universal social protection systems.

Debt sustainability should be prioritized in this endeavour. Without long-term structural changes,

the deep rooted inequalities exposed by the crisis will merely intensify. As well as tackling the

immediate effects of the crisis, the international community now has a unique opportunity to

adopt policies aimed at achieving social justice and a human-centred future of work.

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Policy Recommendations:

We can categorize policy recommendations under four pillars. As the research already discussed

the appalling condition of economy in India and elsewhere, such recommendations are quite

necessary to lessen the effects of the pandemic from harshly influencing a large portion of our

population. We can divide this policy framework among four pillars:

1)Stimulating the economy and employment

● Active fiscal policy

● Accommodative monetary policy

● Lending and financial support to specific sectors, including the health sector

● The timely and coordinated implementation of fiscal and monetary policies can

save lives, prevent people from losing jobs and incomes and companies from

suffering bankruptcy, and facilitate a sustainable recovery.

2)Supporting enterprises, jobs and incomes

● Extend social protection for all

● Implement employment retention measures

● Provide financial/tax and other relief for enterprises

● Employment retention measures should also cover migrants and refugees.

● Providing equal opportunities can increase productivity and reduce societal

tensions.

3)Protecting workers in the workplace

● Adapt work arrangements (e.g. teleworking)

● Prevent discrimination and exclusion

● Corporate vaccination drive

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 ● Expand access to paid leave

● National workplace policies should strive for fast detection and containment at

early stages of transmission, and for mitigation and elimination of the risk of

outbreak through coordinated action between the health and labour sectors, with

the involvement of the social partners

4)Relying on social dialogue for solutions

● Strengthen the capacity and resilience of employers’ and workers’ organizations

● Strengthen the capacity of governments

● Strengthen social dialogue, collective bargaining and labour relations institutions

and processes

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